A premature disposal of shares for which SEIS income tax relief has been attributed will lead to a withdrawal of the relief. The disposal is premature if it occurs before the end of period B (see E3.801)1. Computational rules set out how much relief is to be withdrawn.
Premature disposal—amount of relief to be withdrawn
The amount of relief to be withdrawn, is the lower of2:
- Ìý
•ÌýÌýÌýÌý the amount of relief attributable to the shares
- Ìý
•ÌýÌýÌýÌý a sum equal to tax at the SEIS rate on the amount or value of the consideration received by the investor for the shares
This is expressed in the following equation3:
R × SEISR
where:
R is the amount or value of the consideration received by the investor for the shares, and
SEISR is the SEIS rate
See E3.850 for the rules for determining which shares of any class are treated as disposed if the investor disposes
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Web page updated on 17 Mar 2025 16:55