Income Tax Act 2007 section 241

Information to be provided by the issuing company etc.

Section 241 requires the issuing company and connected persons to notify HMRC when events occur that could jeopardise EIS relief after a compliance statement has been submitted.

• Once a company has submitted an EIS compliance statement, it must notify HMRC within 60 days if any event occurs that breaches key EIS requirements — including limits on risk finance raised, the permitted maximum age requirement, the use of money raised, or the qualifying company conditions
• The obligation to notify also applies where certain Chapter 6 events arise that would cause EIS relief to be withdrawn or reduced, including the investor receiving value, share capital being repaid to other persons, or the company acquiring a trade, trading assets, or share capital
• Both the issuing company and any person connected with it who has knowledge of the relevant event must give notice to HMRC; the company must notify within 60 days of the event (or 60 days of becoming aware, in the case of a receipt of value from a connected person), and any connected person must notify within 60 days of coming to know of the event
• Where the notifiable event is a receipt of value by the investor and the person giving notice is aware of any replacement value received or expected, the notice must also include details of that replacement value

---