Taxes Consolidation Act 1997 section 600B

Interpretation

Section 600B defines the terms and expressions used throughout Chapter 6A of Part 19, which provides angel investor relief in the form of a reduced Capital Gains Tax rate for individual investors who make qualifying investments in innovative enterprises.

• The section defines over 30 terms used in the angel investor relief provisions, many of which derive their meaning from the EU General Block Exemption Regulation (GBER), including "SME," "relief group," "innovative enterprise," and "undertaking in difficulty"
• A "relief group" comprises a company together with its partner businesses and linked businesses; the relief group must be an SME, must not be an undertaking in difficulty, must be less than 7 years old, and is subject to lifetime and annual limits on the total risk finance it may raise
• "Certificates of qualification" — comprising a certificate of going concern and a certificate of commercial innovation — must be held by the company before a qualifying investment can be made; the certificate of going concern confirms SME status and financial viability, while the certificate of commercial innovation confirms the company is an innovative enterprise with a viable business plan
• Key investment-related terms include "qualifying company," "qualifying investor," "qualifying investment," "eligible shares," and "date of investment," each defined by reference to other sections of the Act