Paragraph 7

(1)

Schedule 5B to TCGA 1992 is amended as follows.

(2)

In paragraph 1 (application of Schedule)—

(a)

in sub-paragraph (2), after paragraph (d) insert—

“(da)
the total amount of relevant investments made in the company in the year ending with the date the shares are issued does not exceed £2 million,”, and

(b)

after sub-paragraph (5) insert—

“(6)
Section 173A(3) and (4) of ITA 2007 (meaning of “relevant investment”) apply for the purposes of sub-paragraph (2)(da).
(7)
In sub-paragraph (2)(da), the reference to relevant investments made in the company includes relevant investments made in a company that is, or has at any time in the year mentioned there been, a subsidiary of the company (whether or not it was such a subsidiary when the investment was made).”

(3)

In paragraph 1A(1) (failure of conditions of application), after “(2)(b)” insert “ ;or (2)(da) ”.