Income Tax Act 2007 section 240

Information to be provided by the investor

Section 240 requires an investor who has obtained EIS income tax relief to notify HMRC within 60 days if certain events occur that could affect that relief.

• An investor who has claimed EIS relief must notify HMRC within 60 days of becoming aware of any event that triggers withdrawal or reduction of that relief.
• Triggering events include ceasing to be a qualifying investor, breaching the no linked loans requirement, disposing of shares, or entering into call or put option arrangements over the shares.
• Receiving value from the issuing company is also a triggering event, even where replacement value has been or is expected to be provided, and the notice must include details of any such replacement value the investor knows about.
• The notice must be sent to an officer of HMRC and must contain full particulars of the event concerned.