Section 257MH — Finance Act 2014: The number of employees requirement

The number of employees requirement 257MH 1 If the social enterprise is a single company, the full-time equivalent employee number for it must be less than 500 when the investment is made.

2 If the social enterprise is a parent company, the sum of—

a the full-time equivalent employee number for it, and b the full-time equivalent employee number for each of its qualifying subsidiaries, must be less than 500 when the investment is made.

3 The full-time equivalent employee number for a company is calculated by taking the number of full-time employees of the company and adding, for each employee of the company who is not a full-time employee, such fraction as is just and reasonable.

4 In this section “employee”—

a includes a director, but b does not include—

i an employee on maternity or paternity leave, or ii a student on vocational training.