PART 1Direct taxes

Income tax: investments

11EIS and SEIS: the no pre-arranged exits requirement

1

ITA 2007 is amended as follows.

2

In section 177 (EIS: the no pre-arranged exits requirement), for subsection (2) substitute—

2

The arrangements referred to in subsection (1)(a) do not include—

a

any arrangements with a view to such an exchange of shares, or shares and securities, as is mentioned in section 247(1), or

b

any arrangements with a view to any shares in the issuing company being exchanged for, or converted into, shares in that company of a different class.

3

In section 257CD (SEIS: the no pre-arranged exits requirement), for subsection (2) substitute—

2

The arrangements referred to in subsection (1)(a) do not include—

a

any arrangements with a view to such an exchange of shares, or shares and securities, as is mentioned in section 257HB(1), or

b

any arrangements with a view to any shares in the issuing company being exchanged for, or converted into, shares in that company of a different class.

4

The amendments made by this section have effect in relation to shares issued on or after 5 December 2016.