Taxation of Chargeable Gains Act 1992 Schedule 5B paragraph 14A

Certain receipts to be disregarded for purposes of paragraph 14

Paragraph 14A provides a de minimis exception allowing certain small repayments to be ignored when determining whether deferred gains under the Enterprise Investment Scheme are revived as a result of investment relief being withdrawn under the corporate venturing scheme.

• Where a repayment causes investment relief (under Schedule 15 to the Finance Act 2000) to be withdrawn or reduced, a "relevant amount" is calculated using the formula X − 5Y, where X is the repayment and Y is the total investment relief withdrawn
• If the relevant amount is £1,000 or less, the repayment is disregarded for the purposes of the EIS deferred gains rules in paragraph 14
• The disregard does not apply if "repayment arrangements" existed at any time in the period beginning one year before the shares were issued and ending at the end of the issue date
• Repayment arrangements cover arrangements for a repayment by the issuing company or any of its subsidiaries (regardless of when the subsidiary relationship arose), or for anyone to be entitled to such a repayment

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