Taxation of Chargeable Gains Act 1992 section Sch 5B para 19

Trustees: anti-avoidance

Section 18 of Schedule 5B extends the Enterprise Investment Scheme anti-avoidance rules on receiving value and investment-linked loans to situations where trustees of a settlement subscribe for shares, broadening the scope of who counts as the "investor" and defining the relevant times for these rules.

• Where trustees subscribe for EIS shares, the anti-avoidance rules on receiving value and investment-linked loans apply as if references to the individual investor also cover the trustees, relevant beneficiaries, and their associates or connected persons.
• Beneficiaries caught include any individual or charity whose interest in the settled property at a relevant time causes the deferral relief rules to apply to that property.
• Associates of such individuals and persons connected with such charities are also within the scope of these anti-avoidance provisions.
• The "relevant times" for identifying caught beneficiaries are the date the shares are issued plus the date value is received, the date original value is received (where replacement value rules would otherwise disapply the restriction), or the date an investment-linked loan is made.