Income Tax Act 2007 section 257FM

Receipts of value by and from connected persons etc

Section 257FM broadens the scope of the SEIS "receipt of value" rules so that they catch not only direct dealings between the investor and the issuing company, but also indirect payments, associates of the investor, and persons connected with the company.

• Any payment or transfer to the investor includes indirect payments, payments made to the investor's order, or payments made for the investor's benefit.
• References to "the investor" extend to any associate of the investor, so value received by an associate is treated as value received by the investor.
• References to "the issuing company" extend to any person connected with that company at any time during period A for the relevant shares, regardless of whether the connection exists at the specific time the value is received.
• These extended meanings apply across the key receipt-of-value provisions in sections 257FF, 257FH, 257FI, and 257FJ of the SEIS rules.