Taxation of Chargeable Gains Act 1992

[F1 2 (1) Sub-paragraph (2) applies if the investor's tax reduction under section 257AB of ITA 2007 for the [F2 relevant year] is limited by subsection (2)(b) of that section (calculation of tax reduction where claim made for amounts subscribed for shares which exceed [F3 £200,000]). U.K.

(2) Paragraph 1(5) to (7) has effect as if references to the SEIS expenditure were references to so much of that expenditure as is given by the formula—F4

where—

SA means the SEIS expenditure (ignoring this paragraph);

TSA means the total of the amounts subscribed for shares issued in the [F5 relevant year] in respect of which the investor is eligible for and claims SEIS relief for [F6 that year].

(3) Sub-paragraph (4) applies if the amount of SEIS relief attributable to any of the relevant SEIS shares has been reduced under Chapter 6 of Part 5A of ITA 2007 before the SEIS relief was obtained (otherwise than by virtue of corresponding bonus shares being issued in respect of those shares).

(4) Paragraph 1(5) to (7) has effect as if the SEIS expenditure were the amount found by multiplying that expenditure by the fraction—

where—

“R1” means the amount of SEIS relief attributable to the relevant SEIS shares when the relief is obtained;

“R2” means the amount of SEIS relief which would have been so attributable in the absence of the reduction.

(5) In a case where sub-paragraphs (2) and (4) both apply, sub-paragraph (2) is to be applied before sub-paragraph (4).]

Textual Amendments

F1 Sch. 5BB inserted (17.7.2012) by Finance Act 2012 (c. 14), Sch. 6 para. 5

F2 Words in Sch. 5BB para. 2(1) substituted (17.7.2013) by Finance Act 2013 (c. 29), s. 57(3)(a)

F3 Sum in Sch. 5BB para. 2(1) substituted (6.4.2023 in relation to shares issued on or after that date) by Finance (No. 2) Act 2023 (c. 30), s. 15(6)(a)(7)

F4 Sum "£200,000" in formula in Sch. 5BB para. 2(2) substituted for "£100,000" (6.4.2023 in relation to shares issued on or after that date) by Finance (No. 2) Act 2023 (c. 30), s. 15(6)(b)(7)

F5 Words in Sch. 5BB para. 2(2) substituted (17.7.2013) by Finance Act 2013 (c. 29), s. 57(3)(b)(i)

F6 Words in Sch. 5BB para. 2(2) substituted (17.7.2013) by Finance Act 2013 (c. 29), s. 57(3)(b)(ii)