Income Tax Act 2007 section 230

Repayment of authorised minimum within 12 months

Section 230 provides an exception to the EIS relief withdrawal rules where a public company redeems shares that were originally issued solely to meet the minimum share capital requirement.

• Applies when a company issues shares at the authorised minimum nominal value required by the Companies Act 2006 for public company registration
• The company must have received a trading certificate from the registrar of companies confirming the minimum share capital requirement is met
• If those specific shares are redeemed within 12 months of issue, the usual EIS clawback rule under section 224(2) does not apply
• This exception recognises that such share issues are a procedural necessity for public company status rather than a genuine investment transaction