Section 164A — Income Tax Act 2007: The existing shareholdings requirement

The existing shareholdings requirement 164A 1 If, at the time the relevant shares are issued, the investor holds any other shares in a company within subsection (2) (“C”), those other shares must be—

a a risk finance investment, or b subscriber shares which—

i were issued to, and have since they were issued been continuously held by, the investor, or ii were acquired by the investor at a time when C had not issued any shares other than subscriber shares and had not begun to carry on or make preparations for carrying on any trade or business.

2 The companies referred to in subsection (1) are—

a the issuing company, and b any company which is a qualifying subsidiary of the issuing company at the time the relevant shares are issued.

3 Shares in a company are a “risk finance investment” if—

a they are issued by the company to the investor, and b (at any time) the company provides a compliance statement under section 205, 257ED or 257PB in respect of the issue of shares which includes those shares.