Part 5U.K.Enterprise investment scheme

Chapter 1U.K.Introduction

EIS reliefU.K.

158Form and amount of EIS reliefU.K.

(1)If an individual—

(a)is eligible for EIS relief in respect of any amount subscribed for shares, and

(b)makes a claim in respect of all or some of the shares included in the issue,

the individual is entitled to a tax reduction for the tax year in which the shares were issued (“the current year”).

This is subject to the provisions of this Part.

(2)The amount of the tax reduction to which the individual is entitled is the amount equal to tax at the [F1EIS rate] for the current year on—

(a)the amount or, as the case may be, the sum of the amounts subscribed for shares issued in that year in respect of which the individual is eligible for and claims EIS relief, or

(b)if less, [F2£1 million].

[F3(2A)In this Part “the EIS rate” means [F430%].]

(3)The tax reduction is given effect at Step 6 of the calculation in section 23.

(4)F5... if in the case of any issue of shares—

(a)which are issued F5... in the current year, and

(b)in respect of the amount subscribed for which the individual is eligible for EIS relief,

the individual so claims, subsections (1) and (2) apply as if, in respect of such part of that issue as may be specified in the claim, the shares had been issued in the preceding tax year; and the individual's liability to tax for both tax years is determined accordingly.

F6(5). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F1Words in s. 158(2) substituted (21.7.2008 with effect in accordance with Sch. 1 para. 65 of the amending Act) by Finance Act 2008 (c. 9), Sch. 1 para. 13(2)

F2Words in s. 158(2)(b) substituted (17.7.2012) (with effect in accordance with Sch. 7 para. 22 of the amending Act) by Finance Act 2012 (c. 14), Sch. 7 para. 3(1)

F3S. 158(2A) inserted (21.7.2008 with effect in accordance with Sch. 1 para. 65 of the amending Act) by Finance Act 2008 (c. 9), Sch. 1 para. 13(3)

F4Word in s. 158(2A) substituted (13.10.2011) (with effect in accordance with s. 42(7)(8) of the amending Act) by Finance Act 2011 (c. 11), s. 42(2)(6); S.I. 2011/2459, art. 2

F5Words in s. 158(4) omitted (with effect in accordance with Sch. 8 para. 13(2) of the amending Act) by virtue of Finance Act 2009 (c. 10), Sch. 8 para. 6(2)

F6S. 158(5) omitted (with effect in accordance with Sch. 8 para. 13(3) of the amending Act) by virtue of Finance Act 2009 (c. 10), Sch. 8 para. 6(3)