(1)ITA 2007 is amended as follows.
(2)In section 29 (tax reductions: supplementary), in subsection (4B), after the entry for Chapter 1 of Part 5 insert— “ Chapter 1 of Part 5A (SEIS relief), ”.
(3)In section 32 (liability not dealt with in the calculation), after the entry for section 235 insert— “ under section 257G (withdrawal or reduction of SEIS relief), ”.
(4)In section 257DG (the control and independence requirement), for subsection (2) substitute—
“(2)The independence element of the requirement is that—
(a)the issuing company must not at any time in period A (ignoring any on-the-shelf period) be within subsection (2A), and
(b)no arrangements must be in existence at any time in period A by virtue of which the issuing company could be within that subsection (whether during period A or otherwise).
(2A)The issuing company is within this subsection at any time if it is under the control of any other company (or of another company and any other person connected with that other company).
(2B)In subsection (2)(a) “on-the-shelf period” means a period during which the issuing company—
(a)has not issued any shares other than subscriber shares, and
(b)has not begun to carry on, or make preparations for carrying on, any trade or business.”
(5)The amendments made by subsections (2) and (3) have effect for the tax year 2013-14 and subsequent tax years.
(6)The amendment made by subsection (4) has effect in relation to shares issued on or after 6 April 2013.