VCM50040 - CVS: general: employment of money raised: time limits

FA00/SCH15/PARA37

The time within which the money raised by the issue of the shares must be employed is as follows:

• If it is employed for a trade, or for research and development, which is being carried on at the time when the shares are issued, or for research and development which begins to be carried on immediately afterwards, at least 80% must be employed within twelve months after the date of issue. Any money remaining must be employed within the following 12 months.
• If, when the shares are issued, the company is preparing to carry on a trade, at least 80% must be employed within twelve months after the commencement of that trade. Any money remaining must be employed within the following 12 months.

If the money is to be employed for a trade, which at the date of the issue is not yet being carried on by a group company, it must in any event be employed within three years after the date of issue of the shares.