Income Tax Act 2007 section 250

Nominees and bare trustees

Section 250 explains how shares held through nominees or bare trustees are treated for the purposes of the Enterprise Investment Scheme (EIS), ensuring that the individual beneficiary is regarded as the person who subscribed for, holds, and disposes of the shares.

• Shares handled by a nominee on behalf of an individual are treated as if the individual dealt with them directly for all EIS purposes
• Where shares are issued to a bare trust with multiple beneficiaries, each beneficiary is treated as having individually subscribed for all of those shares
• The amount each beneficiary is treated as having subscribed equals the total subscription amount divided equally by the number of beneficiaries
• The shares in question must meet the specific requirements set out in section 173(2), which defines the type of shares that qualify under the EIS