Income Tax Act 2007 section 257HJ

Minor definitions

Section 257HJ provides a glossary of key terms and interpretive rules used throughout the Seed Enterprise Investment Scheme (SEIS) provisions in Part 5A of the Act.

• Defines essential terms including "arrangements", "associate", "bonus shares", "director", "group", "parent company", "ordinary shares", "qualifying subsidiary" and "research and development", many of which share their meanings with the Enterprise Investment Scheme in Part 5.
• Specifies that the general definition of "control" does not apply to certain SEIS provisions (the control and independence requirement, acquisition of trade or assets, acquisition of share capital, and information powers); instead, "control" in those contexts follows the close companies definition.
• Clarifies how references to the reduction or withdrawal of SEIS relief should be interpreted, including situations where relief has been reduced to nil or where no relief has yet been obtained, and confirms that relief references extend to periods after an investor has disposed of the relevant shares.
• Establishes that shares are only treated as being of the same class if they would be so treated on a recognised stock exchange, that market value means the expected open-market sale price free of any security interest, and that forward-looking requirements are treated as met for the time being provided nothing has occurred to prevent them being met.