Section 150B — Taxation of Chargeable Gains Act 1992: Enterprise investment scheme: reduction of EIS relief .

Enterprise investment scheme: reduction of EIS relief . 150B 1 This section has effect where section 150A(2) applies on a disposal of ... shares, and before the disposal but on or after 29th November 1994—

a value is received in circumstances where EIS relief attributable to the shares is reduced by an amount under section 300(1A)(a) of the Taxes Act or section 213(2)(a) of ITA 2007 , b there is a repayment, redemption, repurchase or payment in circumstances where EIS relief attributable to the shares is reduced by an amount under section 303(1A)(a) of the Taxes Act or section 224(2)(a) of ITA 2007 , or c paragraphs (a) and (b) above apply.

2 If section 150A(2) applies on the disposal but section 150A(3) does not, section 150A(2) shall apply only to so much of the gain as remains after deducting so much of it as is found by multiplying it by the fraction—

a whose numerator is equal to the amount by which the EIS relief attributable to the shares is reduced as mentioned in subsection (1) above, and b whose denominator is equal to the amount of the EIS relief attributable to the shares.

3 If section 150A(2) and (3) apply on the disposal, section 150A(2) shall apply only to so much of the gain as is found by—

a taking the part of the gain found under section 150A(3),

and b deducting from that part so much of it as is found by multiplying it by the fraction mentioned in subsection (2) above.

4 Where the EIS relief attributable to the shares is reduced as mentioned in subsection (1) above by more than one amount, the numerator mentioned in subsection (2) above shall be taken to be equal to the aggregate of the amounts.

5 The denominator mentioned in subsection (2) above shall be found without regard to any reduction mentioned in subsection (1) above. 5A In this section “ EIS relief ” means relief under Chapter 3 of Part 7 of the Taxes Act or Part 5 of ITA 2007.

6 Subsections (11) to (13) of section 150A apply for the purposes of this section as they apply for the purposes of that section.