– see also Business expansion scheme (BES); Seed enterprise investment scheme

Acquisition of shares

Case Law – R (on application of Ames) v Revenue and Customs Commissioners [2018] BTC 518

Aggregation of loan capital and share capital

Case Law – Revenue and Customs Commissioners v Taylor & Anor. [2011] BTC 1,501

Allowable losses

Commentary – Tax Reporter ¶568-050

Approved investment funds

Commentary – Tax Reporter ¶324-160 ; Quick Overview ¶8275

Assessments

Commentary – Tax Reporter ¶324-050

Capital gains tax

Commentary – Quick Overview ¶15880

Carry-back relief

Commentary – Quick Overview ¶8215

CGT clawback

Commentary – Golding and Connolly on Advising British Expats 2.4.5 ; Golding and Connolly on Living and Working Abroad 6.5.5

Chargeable gains

Commentary – Tax Reporter ¶323-070 ; Tax Reporter ¶568-000

Claims for relief

Commentary – Quick Overview ¶8250

Companies, requirements to be met by

Carrying on qualifying business activity

Commentary – Tax Reporter ¶323-330
HMRC Guidance – VCM13150

Coal production, excluded activities

Commentary – Tax Reporter ¶323-460

Control and independence

Commentary – Tax Reporter ¶323-350

Dealing in goods, excluded activities

Commentary – Tax Reporter ¶323-420

Electricity, subsidised generation or export

Commentary – Tax Reporter ¶323-485

Employment of money raised, time limit

Commentary – Tax Reporter ¶323-550 ; Tax Reporter ¶323-570
HMRC Guidance – VCM12060
Case Law – GC Trading Ltd v. R & C Commrs

Excluded activities

Commentary – Tax Reporter ¶323-420–Tax Reporter ¶323-490

Financial health

Commentary – Tax Reporter ¶323-325

Further rules, maximum risk finance investment

Commentary – Tax Reporter ¶323-520

Generally

Commentary – Tax Reporter ¶323-310

Gross assets

Commentary – Tax Reporter ¶323-360

Hotels and comparable establishments, excluded activities

Commentary – Tax Reporter ¶323-470

Issuing company/qualifying subsidiaries to carry on qualifying business activity

Commentary – Tax Reporter ¶323-330
HMRC Guidance – VCM13150

Knowledge-intensive companies

Commentary – Tax Reporter ¶323-375

Leasing, excluded activities

Commentary – Tax Reporter ¶323-430

Location of activity (share issues up to 5 April 2011)

Commentary – Tax Reporter ¶323-590

Maximum amount raised under all risk capital schemes

Commentary – Tax Reporter ¶323-510

Number of employees

Commentary – Tax Reporter ¶323-370

Nursing homes, excluded activities

Commentary – Tax Reporter ¶323-480

Overview

Commentary – Tax Reporter ¶323-495

Permanent establishment

Commentary – Tax Reporter ¶323-315

Permitted maximum age requirement

Commentary – Tax Reporter ¶323-580

Property development, excluded activities

Commentary – Tax Reporter ¶323-450

Property managing subsidiaries

Commentary – Tax Reporter ¶323-390

Provision of services to person carrying on trade, excluded activity

Commentary – Tax Reporter ¶323-490

Purpose of the issue

Commentary – Tax Reporter ¶323-525

Qualifying activities

Commentary – Tax Reporter ¶323-400

Qualifying subsidiaries

Commentary – Tax Reporter ¶323-380–Tax Reporter ¶323-395

Qualifying trades

Commentary – Tax Reporter ¶323-410

Relevant research and development

Commentary – Tax Reporter ¶323-330
HMRC Guidance – VCM13150

Relevant shares

Commentary – Tax Reporter ¶323-500 ; Tax Reporter ¶565-760

Residential care homes, excluded activities

Commentary – Tax Reporter ¶323-480

Royalties and licence fees, excluded activities

Commentary – Tax Reporter ¶323-440

Shares to be unquoted

Commentary – Tax Reporter ¶323-340
HMRC Guidance – VCM15020

Shipbuilding, excluded activities

Commentary – Tax Reporter ¶323-460

Steel production, excluded activities

Commentary – Tax Reporter ¶323-460

Subsidised generation of heat or production of gas or fuel, excluded activities

Commentary – Tax Reporter ¶323-487

Subsidised generation or export of electricity

Commentary – Tax Reporter ¶323-485

Trading requirement

Commentary – Tax Reporter ¶323-320

When funds are employed

Commentary – Tax Reporter ¶323-570
HMRC Guidance – VCM12060
Case Law – GC Trading Ltd v. R & C Commrs

Company limited by guarantee

Case Law – Hunters Property plc [2018] TC 06354

Company, meaning under ITA 2007, s. 185

Case Law – Finn & Ors [2015] TC 04347

Connected person, meaning

Case Law – Revenue and Customs Commissioners v Taylor & Anor. [2011] BTC 1,501

Connected persons

Business angels

Commentary – Tax Reporter ¶323-190

Directors

Commentary – Tax Reporter ¶323-180

Interest in capital

Commentary – Tax Reporter ¶323-200

Issuing company

Commentary – Tax Reporter ¶323-170

Control and independence requirement, becoming a 51% subsidiary of another company

Case Law – Finn & Ors [2015] TC 04347

Deferral of capital gains

Amount of relief

Commentary – Tax Reporter ¶565-550

Anti-avoidance

Commentary – Tax Reporter ¶567-150–Tax Reporter ¶567-450

Background

Commentary – Tax Reporter ¶565-400

Bed and breakfasting

Commentary – Tax Reporter ¶567-150

Breach of conditions

Commentary – Tax Reporter ¶566-800

Chargeable events

Commentary – Tax Reporter ¶566-650

Discretionary trusts

Commentary – Tax Reporter ¶566-550

Disposals

Commentary – Tax Reporter ¶566-700

Eligible shares

Commentary – Tax Reporter ¶565-750

Entrepreneurs' relief

Commentary – Tax Reporter ¶573-450 ; Tax Reporter ¶573-500

Gains accruing on chargeable events

Commentary – Tax Reporter ¶566-850

Gross assets

Commentary – Tax Reporter ¶565-800

Hybrid trusts

Commentary – Tax Reporter ¶566-550

Insignificant value

Commentary – Tax Reporter ¶567-320

Interest in possession settlements

Commentary – Tax Reporter ¶566-550

Investment-linked loans

Commentary – Tax Reporter ¶567-450

Non-resident individuals or spouses

Commentary – Tax Reporter ¶566-750
HMRC Guidance – VCM23120

Offshore trusts

Commentary – Tax Reporter ¶566-550

Outline of relief

Commentary – Tax Reporter ¶565-450

Part disposals: identification rules

Commentary – Tax Reporter ¶566-850

Pre-arranged exits

Commentary – Tax Reporter ¶567-200

Put and call options

Commentary – Tax Reporter ¶567-250

Qualifying business activities

Commentary – Tax Reporter ¶565-850

Qualifying companies

Commentary – Tax Reporter ¶565-800

Re-investment in same or relevant company

Commentary – Tax Reporter ¶567-150

Reconstructions

Commentary – Tax Reporter ¶567-050

Reorganisations

Commentary – Tax Reporter ¶567-000

Repayment of loans

Commentary – Tax Reporter ¶567-310

Replacement value

Commentary – Tax Reporter ¶567-400

Residence status

Commentary – Tax Reporter ¶566-500

Settlor interest

Commentary – Tax Reporter ¶566-550

Trading groups

Commentary – Tax Reporter ¶565-850

Trustees

Commentary – Tax Reporter ¶566-550

Value received by investor

Commentary – Tax Reporter ¶567-300 ; Tax Reporter ¶567-350
HMRC Guidance – VCM23380
Case Law – Domain Dynamics (Holdings) Ltd. v. R & C Commrs

Winding up

Commentary – Tax Reporter ¶565-800

Deferral relief

Generally

Commentary – Quick Overview ¶15880

Issue of shares

Case Law – Blackburn & Anor v Revenue and Customs Commissioners. [2008] BTC 158 ; Blackburn & Anor v Revenue and Customs Commissioners. [2009] BTC 39 ; Blackburn & Anor v. R & C Commrs (2007) Sp C 606

Reinvestment, taper relief

Case Law – Daniels v R & C Commrs (2005) Sp C 489

Deferring CGT charge on sale

Commentary – Chanda on Property Investment 15.7

Eligibility for relief

Commentary – Quick Overview ¶8220

Estates in administration

Commentary – Tax Reporter ¶366-100

Generally

Commentary – Key Data ¶3-310 ; Tax Reporter ¶323-000 ; Key Data ¶7-050 ; Quick Overview ¶8200

Gross assets rule

Commentary – Tax Reporter ¶326-600
HMRC Guidance – VCM15020 ; VCM55180

Identification rules

Commentary – Tax Reporter ¶568-100

IHT planning (powers of attorney)

Commentary – Woolley on Financial Planning with Trusts 21.3.3

Income tax relief

Assessments

Commentary – Tax Reporter ¶324-050

Attribution to shares

Commentary – Tax Reporter ¶323-140

Carry-back

Commentary – Tax Reporter ¶323-050
Case Law – Blackburn & Anor v. R & C Commrs

Claims

Commentary – Tax Reporter ¶323-120

Connected persons

Commentary – Tax Reporter ¶323-170–Tax Reporter ¶323-200

Disqualifying arrangements

Commentary – Tax Reporter ¶323-270 ; Tax Reporter ¶567-500

Eligibility for

Commentary – Tax Reporter ¶323-100

Generally

Commentary – Tax Reporter ¶115-700 ; Tax Reporter ¶323-000 ; Quick Overview ¶8210

How relief is given

Commentary – Tax Reporter ¶323-050
Case Law – Blackburn & Anor v. R & C Commrs

Information powers

Commentary – Tax Reporter ¶324-150

Interest on tax arising from withdrawal or reduction of relief

Commentary – Tax Reporter ¶324-100

Loan linked investments

Commentary – Tax Reporter ¶323-250

Prescribed periods

Commentary – Tax Reporter ¶323-030

Qualifying investors

Commentary – Tax Reporter ¶323-150

Rate

Commentary – Tax Reporter ¶323-050
Case Law – Blackburn & Anor v. R & C Commrs

Reporting requirements

Commentary – Tax Reporter ¶324-150

Requirements to be met by company

Commentary – Tax Reporter ¶323-310–Tax Reporter ¶323-600

Requirements to be met by investor

Commentary – Tax Reporter ¶323-150–Tax Reporter ¶323-300

Risk-to-capital condition

Commentary – Tax Reporter ¶323-110

Transfers between spouses and civil partners

Commentary – Tax Reporter ¶324-000

Withdrawal of relief

Commentary – Tax Reporter ¶323-625–Tax Reporter ¶323-850

Information powers

Commentary – Tax Reporter ¶324-150

Interest on tax arising from withdrawal or reduction of relief

Commentary – Tax Reporter ¶324-100

Investors, requirements to be met by

Business angles

Commentary – Tax Reporter ¶323-190

Connected persons

Commentary – Tax Reporter ¶323-180–Tax Reporter ¶323-200

Connections with issuing company

Commentary – Tax Reporter ¶323-170

Existing shareholdings requirement

Commentary – Tax Reporter ¶323-175

Loan linked investments

Commentary – Tax Reporter ¶323-250

Qualifying investors

Commentary – Tax Reporter ¶323-150

Loan linked investments

Commentary – Tax Reporter ¶323-250

Losses

Commentary – Tax Reporter ¶568-050

Losses on shares

Commentary – Ford on Tax Losses 5.3.3

Mergers of business expansion scheme and enterprise investment scheme companies

Commentary – Tax Reporter ¶568-250

Pre-arranged exits

Commentary – Quick Overview ¶8225

Prescribed periods

Commentary – Quick Overview ¶8205

Qualifying

Activities

Commentary – Quick Overview ¶8240

Company

Commentary – Quick Overview ¶8235

Investors

Commentary – Quick Overview ¶8230

Qualifying business activity

80 percent of share capital not employed in 12-month period

Case Law – Skye Inns Ltd & Anor [2010] TC 00304

Generally

Case Law – Revenue and Customs Commissioners v Valentine Marketing Holdings Ltd. [2009] BTC 106

Refusal to issue certificates

Case Law – Forthright (Wales) Ltd v Davies (HM Inspector of Taxes). [2004] BTC 298

Shares issued to raise money for

Case Law – Domain Dynamics (Holdings) Ltd. v. R & C Commrs (2008) Sp C 701

Qualifying investors

Commentary – Tax Reporter ¶323-150

Re-investment exemption in Seed EIS shares

Attribution of exemption

Commentary – Tax Reporter ¶569-150

Claims

Commentary – Tax Reporter ¶569-200

Generally

Commentary – Tax Reporter ¶569-000–Tax Reporter ¶569-250

Withdrawal of reduction of exemption

Commentary – Tax Reporter ¶569-250

Re-investment relief

Money employed wholly for qualifying business activity

Case Law – Skye Inns Ltd & Anor v Revenue and Customs Commissioners. [2011] BTC 1,930

Subscription for eligible shares

Case Law – Segesta Ltd v Revenue and Customs Commissioners. [2012] BTC 1,604

Registration of shares before receipt of money/payment of money before application for shares

Case Law – Blackburn & Anor v Revenue and Customs Commissioners. [2008] BTC 158 ; Blackburn & Anor v Revenue and Customs Commissioners. [2009] BTC 39 ; Blackburn & Anor v. R & C Commrs (2007) Sp C 606

Relevant shares not meet qualifying conditions

Case Law – Bell [2016] TC 04969

Reporting requirements

Commentary – Tax Reporter ¶324-150

Seed EIS shares

Acquisition of issuing company

Commentary – Tax Reporter ¶568-650

Generally

Commentary – Tax Reporter ¶568-500

Identification rules

Commentary – Tax Reporter ¶568-550

Restriction of exemption where value received

Commentary – Tax Reporter ¶568-600

Seed enterprise investment scheme

– see Seed enterprise investment scheme

Share capital taken at nominal value or subscribed value

Case Law – Revenue and Customs Commissioners v Taylor & Anor. [2011] BTC 1,501

Share for share exchange

Case Law – Finn & Ors [2015] TC 04347

Share incentive plans

Commentary – Tax Reporter ¶361-350

Share loss relief

Commentary – Ford on Tax Losses 5.3.2

Shares in target company disposed of for purposes of ITA 2007, s. 209

Case Law – Finn & Ors [2015] TC 04347

Small or insignificant preferential rights attaching to shares ignored

Case Law – Flix Innovations Ltd [2015] TC 04710

Transfers between spouses and civil partners

Commentary – Tax Reporter ¶324-000

Value received from company

Generally

Commentary – Tax Reporter ¶323-720
HMRC Guidance – VCM15050
Case Law – Domain Dynamics (Holdings) Ltd. v. R & C Commrs

Identification and quantification

Commentary – Tax Reporter ¶323-740

Other persons

Commentary – Tax Reporter ¶323-780
HMRC Guidance – VCM23460

Replacement value, exemption

Commentary – Tax Reporter ¶323-760

Value received rules

Case Law – Blackburn & Anor v Revenue and Customs Commissioners. [2008] BTC 158 ; Blackburn & Anor v Revenue and Customs Commissioners. [2009] BTC 39 ; Blackburn & Anor v. R & C Commrs (2007) Sp C 606

Withdrawal of capital gains tax relief

Commentary – Tax Reporter ¶568-000

Withdrawal of income tax relief

Acquisition by new company

Commentary – Tax Reporter ¶323-800

Acquisition of existing trade

Commentary – Tax Reporter ¶323-850

Acquisition of shares

Commentary – Tax Reporter ¶323-850

Call options

Commentary – Tax Reporter ¶323-670

Corporate venturing scheme relief withdrawn, exemption

Commentary – Tax Reporter ¶323-780
HMRC Guidance – VCM23460

Disposal of shares

Commentary – Tax Reporter ¶323-650 ; Tax Reporter ¶323-700
HMRC Guidance – VCM22090 ; VCM23130

Generally

Commentary – Tax Reporter ¶323-625

Grant of options

Commentary – Tax Reporter ¶323-670

Identification rules, disposal of shares

Commentary – Tax Reporter ¶323-700

Put options

Commentary – Tax Reporter ¶323-670

Relief subsequently found not to be due

Commentary – Tax Reporter ¶323-900

Same day acquisitions, identification rules

Commentary – Tax Reporter ¶323-700

Transfer of trade

Commentary – Tax Reporter ¶323-850

Value received from company

Commentary – Tax Reporter ¶323-720–Tax Reporter ¶323-780
HMRC Guidance – VCM15050 ; VCM23460
Case Law – Domain Dynamics (Holdings) Ltd. v. R & C Commrs

Withdrawal of relief

Disposal of shares

Commentary – Quick Overview ¶8260

Generally

Commentary – Quick Overview ¶8255

Members receiving value from company

Commentary – Quick Overview ¶8265

Replacement capital

Commentary – Quick Overview ¶8270

Withdrawing income tax relief

Case Law – Finn & Ors [2015] TC 04347