There may be circumstances where the reinvestment relief is withdrawn or reduced after it has been claimed and attributed to SEIS shares. This may occur when the SEIS income tax relief attributed to shares is withdrawn or reduced (see E3.851)1, causing the SEIS reinvestment relief attributed to be also withdrawn or reduced in the same proportion2. It is first necessary to attribute the shares with the relief before applying any withdrawal or reduction in that relief.
Attribution of SEIS reinvestment relief to shares
For the purposes of SEIS reinvestment relief, the same rules for attribution of SEIS income tax relief apply (see E3.850) to determine whether SEIS relief is attributable to any shares and, if so, the amount of relief so attributable3.
The amount on which SEIS reinvestment relief is given is treated as spread equally across all the shares in respect of which the claim to relief is made. This is required in order to be able to withdraw or reduce the correct amount of relief,
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Web page updated on 17 Mar 2025 17:14