Revenue Note for Guidance
This section provides the circumstances in which an investment made by an individual shall not be deemed to be a qualifying investment.
(1)(a) If at any time during the compliance period, the company itself or any of its qualifying subsidiaries begins to carry on a business previously carried on at any time in that period otherwise than by that company itself or any of its qualifying subsidiaries or acquires the whole or greater part of the assets used for the purpose of a business being previously carried on, the investment will not be deemed a qualifying investment.
(1)(b) An individual or a group of persons who has an interest of greater than 50 per cent share in the business that was previously carried on and has at any time during the compliance period of the company has at any such time been such an individual that now has an interest in the business carried on by the company or any of its subsidiaries cannot make a qualifying investment.
(1)(b) Furthermore, a person or group of persons who controls or has at any time controlled the company or who controlled another company which carried on the business they will not be entitled to relief in respect of the shares in the company.
(3) For the purposes of determining both of the above, the persons or persons that the business belongs, their shares shall be determined in accordance with paragraphs (a) and (b) of subsection (1), and subsections (2) and (3) of section 400, and any interest, rights or powers of a person who is an associate of another person shall be treated as those of that other person.
(2) An individual is not entitled to relief in respect of any shares in a company where the company at any time in the compliance period acquires all of the issued share capital of another company and a person or group of persons either controls or has at any time controlled the company and the individual is one of the persons or the group of persons that controlled that other company.
Relevant Date: Finance Act 2021