Section 257RC | Put options ^F1

(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.^F1

(2)Any SI relief—^F1

(a)attributable to the investment, or^F1

(b)(as the case may be) attributable to the part of the investment to which the option relates,^F1

must be withdrawn.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—^F1

(a)the option were exercised immediately after the grant, and^F1

(b)any investments made in the social enterprise by the investor after the grant were disposed of immediately after being made,^F1

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