VCM50030 - CVS: general: employment of money raised

FA00/SCH15/PARA36

The money raised by the issue of the shares and of any other shares of the same class issued on the same day must be employed, within a certain time (see VCM50040), wholly for the purpose of a trade. But any amount employed for some other purpose is disregarded if it is insignificant.

For guidance on what is meant by 'employment', and on the identification of the money raised, see VCM12080.

The trade in question may be carried on either by the company or by a subsidiary. Alternatively the money may be employed for the purpose of research and development (see ITA/S1006) from which it is intended that a trade, carried on or to be carried on within the same group, will benefit or will be derived.