Section 220 | Cases where maximum EIS relief not obtained

(1)If the investor's liability to income tax is reduced for any tax year in respect of any issue of shares and—

(a)the amount of the reduction (“A”), is less than

(b)the amount (“B”) which is equal to income tax at the EIS original rate on the amount on which the investor claims EIS relief in respect of the shares,

section 213(2) has effect in relation to any value received as if the amount referred to as “R” were reduced by multiplying it by the fraction—

(2)If the amount of EIS relief attributable to any of the relevant shares has been reduced before the EIS relief was obtained, the amount referred to in subsection (1) as “A” is to be treated for the purposes of that subsection as the amount that it would have been without that reduction.

(3)Subsection (2) does not apply to a reduction of EIS relief by virtue of section 201(4) (attribution of EIS relief where there is a corresponding issue of bonus shares).