Income Tax Act 2007 section 257FK

Value received where part of issue treated as made in previous tax year

Section 257FK explains how to calculate the reduction in SEIS relief when the investor has received value from the company, and the share issue is treated as having been split across two tax years.

• This section applies where the investor has received value under section 257FE and part of the share issue is treated as having been made in a previous tax year under section 257AB.
• The amount of value received ("R") must be apportioned between the two tax years in proportion to the amount of SEIS relief obtained in each year.
• For each apportioned amount, a separate relief reduction is calculated as though there were distinct share issues in each tax year, applying section 257FL where appropriate but not section 257FJ.
• The two separate reduction amounts are then added together to give the total required amount by which SEIS relief is reduced.