Income Tax Act 2007 section 257FF

Value received: receipts of insignificant value

Section 257FF provides that SEIS income tax relief is not withdrawn where the value received by the investor from the issuing company is of insignificant amount, but includes an aggregation rule to prevent abuse through multiple small receipts.

• A receipt of insignificant value from the issuing company does not, on its own, trigger a withdrawal or reduction of SEIS relief under section 257FE
• However, if the investor receives multiple amounts of insignificant value during the relevant period (period A), and their combined total is no longer insignificant, the investor is treated as having received value equal to that total
• Once a particular insignificant receipt has been counted as part of an aggregated total that exceeds the insignificant threshold, it cannot be counted again in any future aggregation
• The definition of what constitutes an "insignificant" amount of value is set out separately in section 257FG