Part 5

Enterprise investment scheme
Chapter 6

Withdrawal or reduction of EIS relief

Miscellaneous

Acquisition of share capital
233
1
Any EIS relief attributable to any shares in a company held by an individual is withdrawn if —
a
the company comes to acquire all of the issued share capital of another company at any time in period A, and
b
the individual is a person, or one of a group of persons, to whom subsection (2) applies.
2
This subsection applies to any person or group of persons who—
a
control or have, at any time in period A, controlled the company, and
b
is or are a person or group of persons who, at any such time, controlled the other company.
3
In determining whether any EIS relief attributable to any shares in the issuing company held by an individual who—
a
is a director of, or of a company which is a partner of, the issuing company or any qualifying subsidiary, and
b
is in receipt of, or entitled to receive, remuneration as such a director falling within section 169(2),
is to be withdrawn, the reference in subsection (2)(b) to any time in period A is to be read as a reference to any time before the end of period A.
4
Section 167(3) applies for the purposes of subsection (3) as it applies for the purposes of section 168, and in subsection (3) “remuneration” includes any benefit or facility.