VCM20600 - EIS: general: qualification periods

Qualification periods are periods for which a provision applies.

As part of the HMRC tax law rewrite (see VCM10075) the names of these periods have changed, though the periods themselves have not. They are described below with their relevant legislation – ICTA for shares issued before 6 April 2007 and ITA for shares issued after that date – shown in brackets.

Three year period (ICTA)

Period B (ITA)_

This is the period beginning on the date of the issue of the shares and ending with the termination date (see below). In the legislation it is called the relevant period - see ICTA/S312 (1A) (b) and ITA/S159(3).

Three year straddling period (ICTA)

Period A(ITA)

This starts with the incorporation of the company, or two years before the date on which the shares are issued if that is later, and ends the day before the termination date - see below. In the legislation it is also called the relevant period - see ICTA/S312 (1A) (a) and ITA/S159(2).

Period of restriction (ICTA)

Period C (ITA)

This starts one year before the date when the shares are issued, and ends the day before the termination date – see ICTA/S312(1) and ITA/S159(4).

Termination date

This is the date three years after the date the shares were issued, or, three years after the date when the company using the money raised by the issue began to carry on the trade (as regards the date when a company begins to carry on a trade, see BIM70505), if that is later. So, if a company which is already trading issued shares on 10 April 2000, the termination date is 10 April 2003 and the three year period ends at midnight on 9 April 2003.