Income Tax Act 2007 section 257FA

Disposal of shares

Section 257FA deals with the withdrawal or reduction of SEIS income tax relief when an investor disposes of shares before the end of period B.

• If shares attracting SEIS relief are disposed of before the end of period B and the disposal is not at arm's length, the full SEIS relief attributable to those shares is withdrawn.
• If the disposal is at arm's length, relief is reduced by the sale consideration multiplied by the SEIS rate — or withdrawn entirely if the relief is no greater than that calculated amount.
• Transfers between spouses or civil partners who are living together at the time of the disposal are exempt from these withdrawal provisions.
• The death of the investor does not trigger any withdrawal of SEIS relief.