Taxation of Chargeable Gains Act 1992

[F1 5 (1) This paragraph applies where in respect of shares issued to an individual— U.K.

(a) SEIS relief is attributable to the shares,

(b) SEIS re-investment relief is also attributable to the shares, and

(c) the SEIS relief which is attributable to the shares is withdrawn or reduced under Chapters 6 and 7 of Part 5A of ITA 2007.

(2) A chargeable gain accrues to the individual in the tax year [F2 in which the shares were issued] on a disposal made in that tax year.

(3) The amount of that gain is—

(a) in a case where the SEIS relief is withdrawn, the amount of SEIS re-investment relief which is attributable to the shares immediately before the withdrawal, and

(b) in a case where the SEIS relief is reduced, the appropriate fraction of that amount.

(4) In a case where the SEIS re-investment relief is withdrawn, the SEIS re-investment relief ceases to be attributable to the shares.

(5) In a case where the SEIS relief is reduced, the appropriate fraction of the SEIS re-investment relief ceases to be attributable to the shares.

(6) “The appropriate fraction” is—

where—

“R1” is the total amount of the SEIS relief attributable to those shares immediately before the reduction, and

“R2” is the total amount of the SEIS relief attributable to those shares immediately after the reduction.]

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. 5(2) substituted (17.7.2013) by Finance Act 2013 (c. 29), s. 57(4)