Income Tax Act 2007 section 257AC

Meaning of "period A" and "period B"

Section 257AC defines two key time periods — "Period A" and "Period B" — used throughout the Seed Enterprise Investment Scheme (SEIS) rules to determine whether various conditions are met in relation to shares issued by a company.

• Period A runs from the date the company was incorporated until immediately before the termination date (the third anniversary of the share issue date).
• Period B runs from the date the shares were issued until immediately before the same termination date.
• The termination date is defined as the third anniversary of the date on which the shares are issued.
• Many SEIS qualifying conditions must be satisfied throughout one or both of these periods, so identifying them correctly is essential.