Income Tax Act 2007 section 257FG

Meaning of "a receipt of insignificant value"

Section 257FG defines what counts as "a receipt of insignificant value" for the purposes of the Seed Enterprise Investment Scheme (SEIS) relief rules on value received by an investor.

• A receipt is of insignificant value if it is no more than £1,000, or if over £1,000, it is insignificant compared to the amount the investor subscribed for the relevant shares.
• If repayment arrangements exist at any point from 12 months before the shares are issued up to the end of the issue date, no amount of value received can be treated as insignificant.
• Repayment arrangements are any arrangements under which the investor is to receive, or is entitled to receive, any value from the issuing company at any time during the relevant period (period A).
• The rules extend beyond the investor and issuing company themselves to include associates of the investor and persons connected with the issuing company at any time during period A.