# Income Tax Act 2007, Section 174: The purpose of the issue requirement

Extent: E+W+S+N.I.

(1) The relevant shares (other than any of them which are bonus shares) must be issued in order to raise money for the purpose of a qualifying business activity so as to promote business growth and development.
(2) For this purpose “business growth and development” means the growth and development of—
(a) if the issuing company is a single company, the business of that company, and
(b) if the issuing company is a parent company, what would be the business of the group if the activities of the group companies taken together were regarded as one business.

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Source: https://www.legislation.gov.uk/ukpga/2007/3/section/174 (the official version)
Page: https://openlegislation.uk/income-tax-act-2007/section-174
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.