Income Tax Act 2007 section 235

Assessments for the withdrawal or reduction of EIS relief

Section 235 sets out how EIS income tax relief is formally withdrawn or reduced once circumstances require it.

• Where EIS relief has already been obtained and later needs to be withdrawn or reduced, this must be done through a formal income tax assessment.
• The assessment is made for the tax year in which the EIS relief was originally given.
• The circumstances triggering withdrawal or reduction are those specified elsewhere in Chapter 6 of the Act.
• The effect is that the taxpayer's income tax liability for the original year of relief is recalculated to reflect the loss of some or all of the EIS relief.