# Finance Act 1997, Paragraph 2


(1) In subsection (8) of section 164A (cases where eligible shares are not a qualifying investment), after “in a qualifying company shall” there shall be inserted “ , subject to subsection (8A) below, ”.
(2) After that subsection there shall be inserted the following subsections—
“(8A) Where the eligible shares acquired by any person in a qualifying company are shares which he acquires by their being issued to him, his acquisition of the shares shall not be regarded as the acquisition of a qualifying investment unless the qualifying company, or a qualifying subsidiary of that company, is intending to employ the money raised by the issue of the shares wholly for the purposes of a qualifying trade carried on by it.
(8B) For the purposes of subsection (8A) above—
(a) the purposes of a trade include the purpose of preparing for the carrying on of the trade; and
(b) “qualifying subsidiary” has the same meaning as in section 164G.”

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Source: https://www.legislation.gov.uk/ukpga/1997/16/schedule/17/paragraph/2 (the official version)
Page: https://openlegislation.uk/finance-act-1997/schedule-17/paragraph-2
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.