Section 257MNA | Maximum amount where investment made in first 7 years ^F1F2

(1)This section applies where—^F1F2

(a)the investment is made before the end of the period of 7 years beginning with the relevant first commercial sale, or^F1F2

(b)the investment is made after that period but—^F1F2

(i)a relevant investment was made in the social enterprise before the end of that period, and^F1F2

(ii)some or all of the money raised by that relevant investment was employed for the purposes of (or of part of) the qualifying activity for which the money raised by the investment is employed.^F1F2

(2)Where this section applies, the total amount of relevant investments made in the social enterprise on or before the date when the investment is made must not exceed £1.5 million.^F1F2

(3)The reference in subsection (2) to relevant investments “made in the social enterprise” is to be read with section 257MNB.^F1F2

(4)In this section—^F1F2

“qualifying activity” means—

(a)a qualifying trade within paragraph (a) of section 257ML(1) carried on by the social enterprise or a 90% social subsidiary of the social enterprise, or

(b)an activity within paragraph (b) of section 257ML(1) so carried on;

“the relevant first commercial sale” has the meaning given by section 175A(6), reading—

(a)references to the issuing company as references to the social enterprise,

(b)references to the issue date as references to the investment date, and

(c)references to money raised by the issue of the relevant shares as references to money raised by the investment;

“relevant investment” has the meaning given by section 173A(3) (reading references in section 173A(3) to a company as including any social enterprise).

(5)Section 173A(4) and (5) apply to determine for the purposes of this section when a relevant investment is made.^F1F2

(6)Where the social enterprise is an accredited social impact contractor—^F1F2

(a)the reference in subsection (1)(a) to the relevant first commercial sale is to be read as a reference to the date on which the social enterprise first entered into a social impact contract;^F1F2

(b)the reference in subsection (1)(b) to the qualifying activity mentioned there is to be read as a reference to the carrying out of the social impact contract for which the money raised by the investment is employed.^F1F2

(7)For provision about maximum amounts where this section does not apply, see section 257MNC.^F1F2