Section 257RC Put optionsF1

(1)

This section applies if, at any time in the longer applicable period, a person grants the investor an option which, if exercised, would bind the grantor to purchase the whole or part of the investment.

(2)

Any SI relief—

(a)

attributable to the investment, or

(b)

(as the case may be) attributable to the part of the investment to which the option relates,

must be withdrawn.

(3)

For the purposes of subsection (2)(b), the part of the investment to which an option relates is the part which, if—

(a)

the option were exercised immediately after the grant, and

(b)

any investments made in the social enterprise by the investor after the grant were disposed of immediately after being made,

would be treated for the purposes of section 257R as disposed of in pursuance of the option.

Annotations

Textual amendments

F1: Pt. 5B inserted (17.7.2014) by Finance Act 2014 (c. 26), Sch. 11 para. 1