Section 809VC — Income Tax Act 2007: Qualifying investments

Qualifying investments 809VC 1 For the purposes of section 809VA, a person makes an investment if—

a shares in a company are issued to or acquired by the person, or b the person makes a loan (secured or unsecured) to a company.

2 The company is referred to as “ the target company ”.

3 The shares or the person's rights under the loan (or both) forming the subject of the investment are referred to as “ the holding ”.

4 The investment counts as a “qualifying investment” if —

a the investment is made before 6 April 2028, b none of the money or other property used to make the investment is TRF capital, and c conditions A and B are met when the investment is made.

5 Conditions A and B are defined in sections 809VD and 809VF.

6 A reference in this section to “ shares ” includes any securities.

7 If a loan agreement authorises a company to draw down amounts of a loan over a period of time—

a entry into the agreement does not count for the purposes of this section as the making of a loan, but b a separate loan is to be treated as made each time an amount is drawn down under the agreement.

8 Accordingly—

a a separate investment is treated as made each time an amount is drawn down under the agreement, and b the reference in subsection (3) to the person's rights under the loan applies only to so much of the person's rights as relate to the drawdown of that particular amount.