VCM23300 - EIS: deferral relief: shares issued on or after 6 April 1998: value received by investor

TCGA92/SCH5B/PARA13

If an investor subscribes for shares that are eligible for deferral relief but receives value from the company within a certain period, see VCM23310, the shares are treated as:

  • never having been eligible shares if the value was received on or before the date of issue of the shares, or
  • ceasing to be eligible shares if the value was received after that date.

Note that the amount of the gain assessable is the whole amount. »Ê¹ÚÌåÓýappre is no apportionment of the gain brought back into charge even if only part of the value of the investment is returned. Where the investor is a trustee see also VCM23540.

»Ê¹ÚÌåÓýappre are two situations when value received on or after 7 March 2001 may be disregarded:

  • when the value received is insignificant, see VCM23380,
  • when the original supplier of value receives replacement value, see VCM23400.