Income Tax Act 2007 section 257FQ

Acquisition of share capital

Section 257FQ provides for the withdrawal of SEIS income tax relief where the investee company acquires all the share capital of another company during Period A, and the investor controls both companies.

• SEIS relief is withdrawn if the company in which the investor holds shares acquires all of the issued share capital of another company at any time during Period A.
• Withdrawal applies where the investor, either alone or as part of a group, controls or has controlled the investee company at any time in Period A.
• The same individual or group must also have controlled the other company (the one being acquired) at any time during Period A.
• Where both the acquisition and control conditions are met, the full amount of SEIS relief attributable to the shares is withdrawn.