Income Tax Act 2007 Schedule 2 paragraph 58

The gross assets requirement

Paragraph 58 of Schedule 2 provides transitional rules that apply higher gross asset limits for certain Enterprise Investment Scheme shares issued in connection with subscriptions or fund approvals made before specific dates in 2006.

• For qualifying shares, the gross assets limits in section 186 are doubled: £15 million replaces £7 million (before share issue) and £16 million replaces £8 million (immediately after)
• These higher limits apply to shares issued to individuals who subscribed for them before 22 March 2006
• They also apply to shares issued to managers of an HMRC-approved investment fund, provided the fund was approved before 22 March 2006 and accepted investments before 6 April 2006
• Where shares are issued via an approved fund, the managers hold them as nominee for the individual investor, regardless of whether that individual invested before or after 6 April 2006