VCM38070 - EIS: deferral relief: shares issued on or after 6 April 1998: meaning of termination date

ICTA88/S312 (1) & ITA/S256

The termination date in relation to any eligible shares issued by a company is:

• the third anniversary of the date on which the shares were issued or, where it is later,
• the third anniversary of the date on which the company using the money raised by the share issue began to carry on the trade for which it was raised.

Example 1

Company A issued eligible shares on 1 June 2000. It used the money raised by the share issue for the purposes of a trade which commenced on 1 April 2000. The termination date in relation to the eligible shares is 1 June 2003.

Example 2

Company B issued eligible shares on 1 November 2000. It used the money raised by the share issue for the purposes of a trade which commenced on 1 December 2000. The termination date in relation to the eligible shares is 1 December 2003.