Section 256 — Income Tax Act 2007: Meaning of “the termination date”

Meaning of “the termination date” 256 1 In this Part “ the termination date ”, in relation to any shares issued by a company, means—

a the third anniversary of the issue date, or b if—

i the money raised by the issue was raised wholly or mainly for the purpose of a qualifying business activity within section 179(2) (the issuing company or a qualifying 90% subsidiary of that company carrying on or preparing to carry on a qualifying trade),

and ii neither the issuing company nor any of its qualifying 90% subsidiaries had begun to carry on the trade in question on the issue date, the third anniversary of the date on which the issuing company or any qualifying 90% subsidiary of that company begins to carry on that trade.

2 In determining for the purposes of subsection (1) when a qualifying trade is begun to be carried on by a qualifying 90% subsidiary of a company, any carrying on of the trade by it before it became such a subsidiary is to be ignored.