Section 218 — Income Tax Act 2007: Value received where there is more than one issue of shares

Value received where there is more than one issue of shares 218 1 This section applies if—

a two or more issues of shares in the issuing company have been made to the investor which include shares in respect of which the investor obtains EIS relief, and b value is received by the investor at any time in the applicable periods for two or more of those issues.

2 Section 213(2) has effect in relation to the shares included in each of the issues referred to in subsection (1)(b) as if the amount of value referred to as “ R ” were reduced by multiplying it by the fraction— A B where— A is the amount on which the investor obtains EIS relief in respect of the shares included in the issue in question, and B is the sum of that amount and the corresponding amount or amounts in respect of the other issue or issues.

3 For the purposes of subsection (1) “the applicable period” for an issue of shares is period C in relation to those shares.