Section 292AA | Maximum risk finance investments when relevant holding is issued requirement ^F1

(1)The total amount of relevant investments made in the relevant company on or before the investment date must not exceed—^F1

(a)if at the investment date the relevant company is a knowledge-intensive company (see section 331A) and—^F2F1

(i)not a specified Northern Ireland company, £40 million;^F1F2

(ii)a specified Northern Ireland company, £20 million, and^F1F2

(b)if at the investment date the relevant company is not a knowledge-intensive company and—^F1F2

(i)not a specified Northern Ireland company, £24 million;^F1F2

(ii)a specified Northern Ireland company, £12 million.^F1F2

(2)In subsection (1), the reference to relevant investments made in the relevant company includes—^F1

(a)relevant investments made in any company that is at the investment date, or has at any time before that date been, a 51% subsidiary of the relevant company (including investments made in such a company before it became such a subsidiary but, if it is not such a subsidiary at the investment date, not investments made in it after it last ceased to be such a subsidiary),^F1

(b)any other relevant investment made in a company to the extent that the money raised by the investment has been employed for the purposes of a trade carried on by another company that has at any time on or before the investment date been a 51% subsidiary of the relevant company (but, if it is not such a subsidiary at the investment date, ignoring any money so employed after it last ceased to be such a subsidiary), and^F1

(c)any other relevant investment made in a company if—^F1

(i)the money raised by the investment has been employed for the purposes of a trade carried on by that company or another person, and^F1

(ii)after the investment was made, but on or before the investment date, that trade became a relevant transferred trade (see subsection (4)).^F1

(3)If only a proportion of the money raised by a relevant investment is employed for the purposes of a trade which becomes a relevant transferred trade, the reference in subsection (2)(c) to the relevant investment is to be read as a reference to the corresponding proportion of that investment.^F1

(4)Where—^F1

(a)at any time on or before the investment date, a trade is transferred—^F1

(i)to the relevant company,^F1

(ii)to a company that at the investment date is, or has at any time before that date been, a 51% subsidiary of the relevant company, or^F1

(iii)to a partnership of which a company within sub-paragraph (i) or (ii) is a member,^F1

(including where it is transferred to a company within sub-paragraph (ii), or a partnership of which such a company is a member, before the company became such a subsidiary but, if the company is not such a subsidiary at the investment date, not where it is transferred to such a company or partnership after the company last ceased to be such a subsidiary), and

(b)the trade or a part of it was previously (at any time) carried on by another person,^F1

the trade or part mentioned in paragraph (b) becomes a “ relevant transferred trade ” at the time it is transferred as mentioned in paragraph (a).

(5)In this section—^F1

“the investment date” means the date the relevant holding is issued;

“relevant investment” has the meaning given by section 292A(3), and section 292A(4) and (4A) (which determine when certain investments are made) applies for the purposes of this section;

and section 280B(8) and (9) (meaning of “trade” etc) applies for the purposes of this section as it applies for the purposes of section 280B.

(6)Subsection (7) applies if, by virtue of the provision of a compliance statement under section 205, 257ED or 257PB, the requirement of this section is not met.^F1

(7)The requirement is to be treated as having been met throughout the period—^F1

(a)beginning with the investment date, and^F1

(b)ending with the time the compliance statement was provided.^F1