229Maximum relief not obtained for share issue
(1)This section applies if section 224(2) applies to EIS relief attributable to shares held by an individual and—
(a)the amount of the reduction (“A”) in the individual’s liability to income tax for any tax year in respect of the shares, is less than
(b)the amount (“B”) which is equal to income tax at the savings rate for that year on the amount on which the individual claims EIS relief in respect of the shares.
(2)Section 224(2) has effect as if the amount referred to as “R” were reduced by multiplying it by the fraction—
(3)If the amount of EIS relief attributable to any of the relevant shares has been reduced before the EIS relief was obtained, the amount referred to in subsections (1) and (2) as “A” is to be treated for the purposes of those subsections as the amount that it would have been without that reduction.
(4)Subsection (3) does not apply to a reduction of EIS relief by virtue of section 201(4) (attribution of EIS relief where there is a corresponding issue of bonus shares).