Income Tax Act 2007 section 255

Meaning of "issue of shares"

Section 255 defines what constitutes an "issue of shares" and an "issue of shares to an individual" for the purposes of the Enterprise Investment Scheme (EIS) provisions.

• An "issue of shares" in a company means all shares of the same class issued on the same day.
• An "issue of shares to an individual" means all shares of the same class issued to that particular individual on the same day.
• The definition of an issue of shares to an individual is subject to certain exceptions relating to the attribution, claiming, withdrawal and reduction of EIS relief.
• These exceptions allow specific EIS provisions to treat share issues differently where relief spans more than one tax year or where maximum relief was not obtained.