Section 257QR — Income Tax Act 2007: Acquisition of share capital

Acquisition of share capital 257QR 1 Any SI relief attributable to the investment is withdrawn if—

a the social enterprise comes to acquire all of the issued share capital of another company at any time in the longer applicable period, and b the investor is a person, or one of a group of persons, to whom subsection (2) applies.

2 This subsection applies to any person or group of persons who—

a control or have, at any time in the longer applicable period, controlled the social enterprise, and b is or are a person or group of persons who, at any such time, controlled the other company.

3 If the investor—

a is a director of, or of a company which is a partner of, the social enterprise or any qualifying subsidiary, and b is in receipt of, or entitled to receive, remuneration as such a director falling within section 257LF(5)(g) (reasonable remuneration for services), then, in determining whether any SI relief attributable to the investment is to be withdrawn, the reference in subsection (2)(b) to any time in the longer applicable period is to be read as a reference to any time before the end of the longer applicable period.

4 Section 257LF(8) (director also an employee) applies for the purposes of subsection (3) as it applies for the purposes of section 257LF, and in subsection (3) “ remuneration ” includes any benefit or facility.