Paragraph 2

United Kingdom

(1)

An individual shall not be entitled to relief under this Part of this Schedule in respect of any shares if—

(a)

there is a loan made by any person, at any time in the relevant period, to that individual or any associate of his; and

(b)

the loan is one which would not have been made, or would not have been made on the same terms, if that individual had not subscribed for those shares or had not been proposing to do so.

(2)

References in this paragraph to the making by any person of a loan to any individual or an associate of his include references—

(a)

to the giving by that person of any credit to that individual or any associate of his; and

(b)

to the assignment or assignation to that person of any debt due from that individual or any associate of his.

(3)

In this paragraph—

“associate” has the meaning given in subsections (3) and (4) of section 417, except that in those subsections (as applied for the purposes of this paragraph) “relative” shall not include a brother or sister; and
“the relevant period”, in relation to relief under this Part of this Schedule in respect of any shares in a company which is a venture capital trust, means the period beginning with the incorporation of the company (or, if the company was incorporated more than two years before the date on which the shares were issued, beginning two years before that date) and F1ending immediately before the F2fifth anniversary of the date on which the shares were issued.

Annotations

Textual amendments

F1: Words in Sch. 15B para. 2(3) substituted (with effect in accordance with Sch. 18 para. 3 of the amending Act) by Finance Act 2000 (c. 17), Sch. 18 para. 1(2)
F2: Word in Sch. 15B para. 2(3) substituted (with effect in accordance with Sch. 14 para. 7(5) of the amending Act) by Finance Act 2006 (c. 25), Sch. 14 para. 7(2)

Notes on Schedule 15B

Textual amendments

F1: Sch. 15B inserted (with effect in accordance with s. 71(4) of the amending Act) by Finance Act 1995 (c. 4), s. 71(2), Sch. 15

Notes on Part I

Textual amendments

F1: Sch. 15B Pt. 1 (paras. 1-6) repealed (6.4.2007 with effect in accordance with s. 1034(1) of the repealing Act) by Income Tax Act 2007 (c. 3), Sch. 1 para. 234, Sch. 3 Pt. 1 (with Sch. 2)
F2: Sch. 15B inserted (with effect in accordance with s. 71(4) of the amending Act) by Finance Act 1995 (c. 4), s. 71(2), Sch. 15