Income Tax Act 2007 section 215

Meaning of "receipts of insignificant value"

Section 215 defines what counts as a "receipt of insignificant value" for the purposes of the EIS value received rules, and sets out the circumstances in which this treatment is denied.

• A receipt is of insignificant value if it is £1,000 or less, or if it exceeds £1,000 but is insignificant compared to the amount the investor subscribed for the relevant shares.
• If repayment arrangements exist at any time in the 12 months before the shares are issued up to and including the issue date, no receipt can qualify as insignificant regardless of its size.
• Repayment arrangements are any arrangements under which the investor is to receive, or becomes entitled to receive, any value from the issuing company at any time during period C relating to the relevant shares.
• References to the investor include any associate of the investor during period C, and references to the issuing company include any person connected with the company during period C, whether or not the association or connection exists at the particular time in question.