Income Tax Act 2007 section 217

The amount of value received

Section 217 sets out how to calculate the amount of value received by an EIS investor in each of the different circumstances where value is treated as having been received under section 216, for the purposes of determining whether EIS relief should be withdrawn or reduced.

• Where the investor receives a repayment of share capital, a loan repayment, or has a debt released or assigned, the value received is the amount received or the market value of the shares, securities or debt — whichever is greater
• Where the investor receives a loan or advance from the company, the value received is the loan amount less any repayments made before the relevant shares were issued
• Where the company provides a benefit or facility to the investor, the value received is the company's cost of providing it, minus any consideration the investor paid for it
• Where the investor acquires an asset from the company at an undervalue or disposes of an asset to the company at an overvalue, the value received is the difference between market value and any consideration given