Schedule 4 | EIS And VCT Reliefs: Knowledge-Intensive Companies | Finance Act 2018 C3

SCHEDULE 4 EIS and VCT Reliefs: Knowledge-Intensive Companies

Finance Act 2018 (2018 c 3) | Legislation

SCHEDULE 4 EIS and VCT Reliefs: Knowledge-Intensive Companies

Section 16

Amount of EIS relief

(1) Section 158 of ITA 2007 (form and amount of EIS relief) is amended as follows.

(2) In subsection (2)(a), after “EIS relief” insert “(qualifying shares)”.

(3) In subsection (2)(b), for “£1 million” substitute “the allowable amount”.

(4) After subsection (2) insert—

“(2ZA) The allowable amount is—

(a) if the qualifying shares do not include any KIC shares: £1 million;

(b) if the amount, or the sum of the amounts, subscribed for qualifying shares that are KIC shares is £1 million or more: £2 million;

(c) if neither paragraph (a) nor paragraph (b) applies: £1 million plus the amount, or the sum of the amounts, subscribed for qualifying shares that are KIC shares.

(2ZB) In subsection (2ZA) “KIC shares” means shares in a company which, or in companies each of which, is a knowledge-intensive company at the time the shares are issued (see section 252A and subsection (6)).”

(5) In subsection (4), for “subsections (1) and (2)” substitute “subsections (1) to (2ZB)”.

(6) At the end insert—

“(6) If the issuing company began to carry on a trade less than