Income Tax Act 2007 section 257HE

Nominees and bare trustees

Section 257HE sets out how shares held through nominees or bare trusts are treated for the purposes of the Seed Enterprise Investment Scheme (SEIS).

• Where a nominee subscribes for, holds or disposes of shares on behalf of an individual, those actions are treated as carried out by the individual directly
• Where shares are issued to a bare trust for two or more beneficiaries, each beneficiary is treated as having individually subscribed for all of the shares
• The subscription amount attributed to each beneficiary is the total amount subscribed divided equally by the number of beneficiaries
• The shares in question must meet the specific requirements set out in section 257CA(2), known as the shares requirement