[F1[F2809VCQualifying investmentsU.K.
(1)For the purposes of section 809VA, a person makes an investment if—
(a)shares in a company are issued to [F3or acquired by] the person, or
(b)the person makes a loan (secured or unsecured) to a company.
(2)The company is referred to as “the target company”.
(3)The shares or the person's rights under the loan (or both) forming the subject of the investment are referred to as “the holding”.
(4)The investment counts as a “qualifying investment” if conditions A and B are met when the investment is made.
(5)Conditions A and B are defined in sections 809VD and 809VF.
(6)A reference in this section to “shares” includes any securities.
(7)If a loan agreement authorises a company to draw down amounts of a loan over a period of time—
(a)entry into the agreement does not count for the purposes of this section as the making of a loan, but
(b)a separate loan is to be treated as made each time an amount is drawn down under the agreement.
(8)Accordingly—
(a)a separate investment is treated as made each time an amount is drawn down under the agreement, and
(b)the reference in subsection (3) to the person's rights under the loan applies only to so much of the person's rights as relate to the drawdown of that particular amount.]]
Textual Amendments
F1Pt. 14 Ch. A1 inserted (21.7.2008 with effect in accordance with Sch. 7 para. 81 of the amending Act) by Finance Act 2008 (c. 9), Sch. 7 para. 1 (with Sch. 7 paras. 85-89)
F2Ss. 809VA-809VO and cross-heading inserted (17.7.2012) (with effect in accordance with Sch. 12 para. 17 of the amending Act) by Finance Act 2012 (c. 14), Sch. 12 para. 7
F3Words in s. 809VC(1)(a) inserted (with effect in accordance with s. 15(8) of the amending Act) by Finance (No. 2) Act 2017 (c. 32), s. 15(2)
Modifications etc. (not altering text)
C1Pt. 14 Ch. A1 modified by 2005 c. 5, s. 643F(4) (as inserted (with effect for the tax year 2018-19 and subsequent years) by Finance Act 2018 (c. 3), Sch. 10 paras. 11, 21(1) (with Sch. 11 para. 22))
C2Pt. 14 Ch. A1 modified by 2005 c. 5, s. 643N(3)(4) (as inserted (with effect for the tax year 2018-19 and subsequent years) by Finance Act 2018 (c. 3), Sch. 10 paras. 11, 21(1) (with Sch. 11 para. 22))
C3Ss. 809L-809Z6 applied by 2005 c. 5, s. 643I(9) (as inserted (with effect for the tax year 2018-19 and subsequent years) by Finance Act 2018 (c. 3), Sch. 10 paras. 11, 21(1) (with Sch. 11 para. 22))
C4Ss. 809L-809Z6 applied by 2005 c. 5, s. 643A(6) (as inserted (with effect for the tax year 2018-19 and subsequent years) by Finance Act 2018 (c. 3), Sch. 10 paras. 11, 21(1) (with Sch. 11 para. 22))