(1)The receipt of the replacement value by the original supplier is ignored for the purposes of section 222(1) to the extent to which it has previously been set (under that section) against a receipt of value to prevent any reduction or withdrawal of EIS relief under section 213.
(2)The receipt of the replacement value by the original supplier (“the event”) is ignored for the purposes of section 222 if—
(a)the event occurs before period C relating to the relevant shares,
(b)if the event occurs after the time the original recipient receives the original value, it does not occur as soon after that time as is reasonably practicable in the circumstances, or
(c)if an appeal has been brought by the investor against an assessment to withdraw or reduce any EIS relief attributable to the relevant shares because of the receipt of the original value, the event occurs more than 60 days after the day on which the amount of relief which falls to be withdrawn has been finally determined.
But nothing in section 222 or this section requires the replacement value to be received after the original value.
(3)This subsection applies if—
(a)the receipt of the replacement value by the original supplier is a qualifying receipt for the purposes of section 222(1), and
(b)in consequence of the receipt any receipts of value are ignored for the purposes of section 213 as that section applies in relation to the shares in question or any other shares subscribed for by the investor, and
(c)the event which gives rise to the receipt is (or includes) a subscription for shares by—
(i)the investor, or
(ii)any person who at any time in period C relating to the relevant shares is an associate of the investor (whether or not the person is such an associate at the material time).
(4)If either of the following applies—
(a)subsection (3), and
(b)paragraph 13C(3) of Schedule 5B to TCGA 1992 (which makes corresponding provision in relation to relief under that Schedule in respect of re-investment under EIS),
the person who subscribes for the shares is not to be eligible for any EIS relief in relation to those shares or any other shares in the same issue.
(5)In this section “the original recipient”, “the original supplier” and “replacement value” have the same meaning as in section 222.