Section 215 — Income Tax Act 2007: Meaning of “receipts of insignificant value”

Meaning of “receipts of insignificant value” 215 1 This section applies for the purposes of section 214. 2 “ A receipt of insignificant value ” means a receipt of an amount of insignificant value, that is, an amount of value which—

a is not more than £1,000, or b if it is more than £1,000, is insignificant in relation to the amount subscribed by the investor for the relevant shares. This is subject to subsection (3).

3 If at any time in the period—

a beginning 12 months before the issue of the relevant shares, and b ending at the end of the issue date, repayment arrangements are in existence, no amount of value received by the investor is treated as a receipt of insignificant value.

4 For this purpose “ repayment arrangements ” means arrangements which provide for the investor to receive, or to be entitled to receive, any value from the issuing company at any time in period C relating to the relevant shares.

5 For the purposes of this section—

a the references to the investor include references to any person who at any time in period C relating to the relevant shares is an associate of the investor (whether or not that person is such an associate at the material time),

and b the reference in subsection (4) to the issuing company includes a reference to a person who at any time in period C relating to the relevant shares is connected with that company (whether or not that person is so connected at the material time).