Taxation of Chargeable Gains Act 1992 Schedule 5B paragraph 13A

Provision supplemental to paragraph 13

Paragraph 13A supplements the rules on value received by an investor under the Enterprise Investment Scheme re-investment relief, by setting out how the value received is quantified in each scenario and defining what counts as an insignificant amount.

• The value received by the investor is calculated differently depending on the type of benefit — for example, it may be the amount received, the market value of shares or securities, the amount of a liability released, or the net cost of a benefit provided.
• A receipt is treated as being of insignificant value if it does not exceed £1,000, or if it exceeds £1,000 but is still insignificant relative to the total expenditure on the shares set against chargeable gains under the Schedule.
• The insignificant value exception is completely removed if, at any time in the year before the shares are issued up to and including the issue date, arrangements exist for the investor to receive value from the company during the restriction period.
• References to the investor include any of their associates during the restriction period, and references to the company include any person connected with the company during that period.

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