Income Tax Act 2007 section 257FI

The amount of value received

Section 257FI sets out how to calculate the amount of value received by an investor under the Seed Enterprise Investment Scheme (SEIS), depending on the type of value received.

• Where the investor receives payments, shares, securities or has a debt repaid or released, the value received is the amount received or, if greater, the market value of the relevant shares, securities or debt.
• Where the company provides a loan, advance, benefit or facility, the value is the net cost — that is, the loan amount less any repayments made before share issue, or the company's cost of providing the benefit less any consideration paid by the investor.
• Where an asset is disposed of to the investor or a payment is made, the value is the difference between market value and any consideration given, or simply the payment amount as appropriate.
• These valuations determine the extent to which SEIS income tax relief may be withdrawn or reduced when the investor receives value from the issuing company.