VCM25420 - EIS: income tax relief: minimum subscription

ICTA/S290 (1); ITA/S157 (2) & (3)

No relief is available on subscriptions made for shares in a company for a year of assessment if the amounts subscribed for shares of that company issued in that year total less than £500. However, this does not apply to subscriptions made through an approved investment fund (see VCM21510).

Example

Miss Edwards subscribes £400 for shares in Comfy Chairs Ltd on 28 March 2007, and £450 for shares in Dolly Dresses on 7 April 2007. In each case the shares were issued to her on 8 April 2007. No relief is available because in each case the amount subscribed was less than £500.

If the facts were the same except that both subscriptions were for shares in the same company, relief would be available (assuming all other conditions were satisfied) because the total subscribed for shares in the company issued in 2006-07 was over £499, even though the subscriptions made in each year were less than £500.