{
  "url": "https://openlegislation.uk/income-tax-act-2007/section-257MH",
  "json_url": "https://openlegislation.uk/income-tax-act-2007/section-257MH.json",
  "legislation": "ukpga/2007/3",
  "legislation_title": "Income Tax Act 2007",
  "legislation_url": "https://openlegislation.uk/income-tax-act-2007",
  "path": "section/257MH",
  "kind": "section",
  "number": "257MH",
  "heading": "The number of employees requirement",
  "text": "(1) If the social enterprise is a single company, the full-time equivalent employee number for it must be less than 250 when the investment is made.\n(2) If the social enterprise is a parent company, the sum of—\n(a) the full-time equivalent employee number for it, and\n(b) the full-time equivalent employee number for each of its qualifying subsidiaries,\nmust be less than 250 when the investment is made.\n(3) The full-time equivalent employee number for a company is calculated by taking the number of full-time employees of the company and adding, for each employee of the company who is not a full-time employee, such fraction as is just and reasonable.\n(4) In this section “employee”—\n(a) includes a director, but\n(b) does not include—\n(i) an employee on maternity , paternity , parental bereavement or neonatal care leave, or\n(ii) a student on vocational training.",
  "extent": "E+W+S+N.I.",
  "status": null,
  "version": "current",
  "annotations": [
    {
      "type": "F",
      "label": "F1",
      "text": "Pt. 5B inserted (17.7.2014) by Finance Act 2014 (c. 26), Sch. 11 para. 1"
    },
    {
      "type": "F",
      "label": "F2",
      "text": "Word in s. 257MH(1)(2) substituted (with effect in accordance with Sch. 1 para. 14(1)(2) of the amending Act) by Finance (No. 2) Act 2017 (c. 32), Sch. 1 para. 7"
    },
    {
      "type": "F",
      "label": "F3",
      "text": "Words in s. 257MH(4)(b)(i) substituted (18.1.2020) by Parental Bereavement (Leave and Pay) Act 2018 (c. 24), s. 2(2), Sch. para. 53; S.I. 2020/45, reg. 2"
    },
    {
      "type": "F",
      "label": "F4",
      "text": "Words in s. 257MH(4)(b)(i) substituted (17.1.2025) by Neonatal Care (Leave and Pay) Act 2023 (c. 20), s. 3(3), Sch. para. 53; S.I. 2025/41, reg. 2"
    }
  ],
  "outstanding_effects": [
    {
      "type": "word substituted",
      "affecting": "ukpga/2025/36",
      "affecting_title": "Employment Rights Act 2025"
    }
  ],
  "provenance": {
    "source": "legislation.gov.uk",
    "source_url": "https://www.legislation.gov.uk/ukpga/2007/3/section/257MH",
    "retrieved_at": "2026-10-29T09:13:03.599581+00:00"
  },
  "licence": "Open Government Licence v3.0",
  "licence_url": "https://www.nationalarchives.gov.uk/doc/open-government-licence/version/3/",
  "attribution": "Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives."
}