Income Tax Act 2007

[F1Key definitionsU.K.

257KAKey to reading the rest of the PartU.K.

In the following provisions of this Part (except section 257N), a reference to—

• “the amount invested”,

• “the investment”,

• “the investor”, or

• “the social enterprise”,

is to be read in accordance with section 257K(1).

257KBWhen investment is made, and “investment date”U.K.

(1)For the purposes of this Part “the investment date” means the date on which the investment is made.

(2)So far as the investment is in shares, for the purposes of this Part it is made when the shares are issued to the investor by the social enterprise.

(3)If the investment, so far as it is in qualifying debt investments (see section 257L), involves making the only advance covered by the debenture or debentures concerned, for the purposes of this Part it is made—

(a)when the social enterprise issues the debenture or debentures to the investor, or

(b)in a case where there is to be no such issuing, when the debenture or debentures, so far as relating to the advance, take effect between the social enterprise and the investor.

(4)If the investment, so far as it is in qualifying debt investments, involves making the first of multiple advances covered by the debenture or debentures concerned, for the purposes of this Part it is made—

(a)when the social enterprise issues the debenture or debentures to the investor, or

(b)in a case where there is to be no such issuing, when the debenture or debentures, so far as relating to all of those advances, take effect between the social enterprise and the investor.

(5)If the investment, so far as it is in qualifying debt investments, involves making the second of multiple advances covered by the debenture or debentures concerned, or a subsequent one of those advances, for the purposes of this Part it is made—

(a)when the amount of that advance is fully advanced in cash, or

(b)if later—

(i)when the social enterprise issues the debenture or debentures to the investor, or

(ii)in a case where there is to be no such issuing, when the debenture or debentures, so far as relating to all of those advances, takes effect between the social enterprise and the investor.

(6)For the purposes of subsections (3) to (5) “debenture” includes any instrument creating or acknowledging indebtedness.

257KC“Shorter applicable period” and “longer applicable period”U.K.

(1)In this Part “the shorter applicable period” and “the longer applicable period” have the meaning given by this section.

(2)The shorter applicable period begins with the investment date.

(3)The longer applicable period begins with—

(a)the day on which the social enterprise is—

(i)incorporated (if it is a body corporate), or

(ii)established (in any other case), or

(b)if later, the day whose first anniversary is the investment date.

(4)Each of the periods ends with the third anniversary of the investment date.]