When an EIS company is taken over, the acquiring company may issue its own shares in exchange for the original shares; that is the shares which have attracted EIS Income Tax relief and some or all of which have also attracted deferral relief. Even though new shares are issued in exchange this is a disposal of the original shares and the deferred gain comes back into charge unless:

all the EIS Income Tax relief and deferral relief given on the original shares has been withdrawn, possibly as a result of the take-over, or

the share exchange takes place on or after 6 April 1998 and falls within TCGA92/S150A/PARA8D, see VCM20190, or

Need help? Get subscribed!

To subscribe to this content, simply call 0800 231 5199

We can create a package that’s catered to your individual needs.

Or book a demo to see this product in action.