Income Tax Act 2007 section 233

Acquisition of share capital

Section 233 deals with the withdrawal of EIS income tax relief where the company in which the individual holds shares acquires all the issued share capital of another company, and the individual (alone or with others) controls both companies.

• EIS relief is withdrawn if the company acquires all the share capital of another company during period A and the individual (alone or as part of a group) controls or has controlled both companies during that period
• Control of both companies by the same person or group at any time during period A is the key trigger for withdrawal
• For directors receiving remuneration from the issuing company or its qualifying subsidiaries, the control test extends to any time before the end of period A, rather than being limited to period A itself
• Remuneration for these purposes is broadly defined and includes any benefit or facility, not just cash payments