Income Tax Act 2007 section 256

Meaning of "the termination date"

Section 256 defines what "the termination date" means in relation to shares issued by a company under the Enterprise Investment Scheme, which determines the end of the period during which certain EIS conditions must be met.

• The termination date is normally the third anniversary of the date on which the shares were issued.
• Where the money raised was wholly or mainly for a qualifying trade that had not yet started on the issue date, the termination date is instead the third anniversary of the date the trade actually begins.
• This extended deadline applies whether the trade is carried on by the issuing company itself or by a qualifying 90% subsidiary.
• Any trading carried on by a subsidiary before it became a qualifying 90% subsidiary of the issuing company is disregarded when determining when the trade began.