Income Tax Act 2007 section 257FE

Value received by the investor

Section 257FE deals with the reduction or withdrawal of SEIS income tax relief when an investor receives value from the issuing company during the relevant period (period A).

• If an investor receives value from the issuing company during period A in relation to SEIS shares, the associated tax relief must be reduced or withdrawn
• The reduction amount is calculated as the value received multiplied by the SEIS rate; if existing relief exceeds this amount it is reduced accordingly, otherwise relief is withdrawn entirely
• Value already accounted for through a previous reduction or withdrawal of relief is not counted again
• Where SEIS shares have been transferred between spouses or civil partners, the person who acquired the shares is treated as the investor for these purposes