Part 5

Enterprise investment scheme
Chapter 8

Supplementary and general

Acquisition of issuing company

Substitution of new shares for old shares
249
1
Subsection (2) applies if, in the case of any new shares held by an individual to which EIS relief becomes attributable under section 247, the old shares for which they were exchanged were subscribed for by and issued to the individual.
2
This Part; (except section 195(7)) has effect as if—
a
the new shares had been subscribed for by the individual at the time when, and for the amount for which, the old shares were subscribed for by the individual,
b
the new shares had been issued to the individual by the new company at the time when the old shares were issued to the individual by the old company,
c
the claim for EIS relief made in respect of the old shares had been made in respect of the new shares, and
d
the individual's liability to income tax had been reduced in respect of the new shares for the same tax year as that for which the individual's liability was so reduced in respect of the old shares.
3
Subsection (4) applies if, in the case of any new shares held by an individual to which EIS relief becomes so attributable under section 247, the old shares for which they were exchanged were transferred to the individual as mentioned in section 245.
4
This Part; (except section 195(7)) has effect in relation to any subsequent disposal or other event as if—
a
the new shares had been subscribed for by the individual at the time when, and for the amount for which, the old shares were subscribed for,
b
the new shares had been issued by the new company at the time when the old shares were issued by the old company,
c
the claim for EIS relief made in respect of the old shares had been made in respect of the new shares, and
d
the individual's liability to income tax had been reduced in respect of the new shares for the same tax year as that for which the liability of the individual who subscribed for the old shares was so reduced in respect of those shares.
Words in s. 249(4) inserted (retrospective to 6.4.2007) by Finance Act 2007 (c. 11), Sch. 16 paras. 11(8)(b), 13
Words in s. 249(2) inserted (retrospective to 6.4.2007) by Finance Act 2007 (c. 11), Sch. 16 paras. 11(8)(a), 13