Income Tax Act 2007 section 257MNB

Section 257MNA: supplementary

Section 257MNB provides supplementary rules for determining which investments count towards a social enterprise's lifetime investment limit under section 257MNA, including investments made in 51% subsidiaries and investments linked to trades that have been transferred into the group.

• Investments counting towards the social enterprise's lifetime limit include those made in its current or former 51% subsidiaries, not just investments made directly in the enterprise itself
• Where investment money raised by one company has been used for a trade carried on by a 51% subsidiary of the social enterprise, that investment also counts towards the limit in proportion to the amount so used
• Investments linked to trades that were later transferred into the social enterprise or its group are caught, but only in proportion to the money actually employed in the transferred trade
• Once a company ceases to be a 51% subsidiary, investments made after that date and money employed after that date are excluded from the calculation