Section 257FK | Value received where part of issue treated as made in previous tax year ^F1

(1)This section applies if—^F1

(a)section 257FE(2) applies to an issue of shares, and^F1

(b)section 257AB(1) and (2) (form and amount of SEIS relief) applies in the case of that issue as if part of the issue had been issued in a previous tax year.^F1

(2)This subsection explains how the calculation under section 257FE(2) is to be made.^F1

Step 1 Apportion the amount referred to as “R” between the tax year in which the shares were issued and the previous tax year by multiplying that amount by the fraction— A Bwhere—A is the amount on which the investor obtains SEIS relief in respect of the shares treated as issued in the tax year in question, andB is the sum of that amount and the corresponding amount in respect of the shares treated as issued in the other tax year.

Step 2 In relation to each of the amounts (“R1” and “R2”) so apportioned to the two tax years, calculate the amounts (“X1” and “X2”) that would be given by the formula if there were separate issues of shares in those tax years. In calculating amounts X1 and X2, apply section 257FL if appropriate but do not apply section 257FJ.

Step 3 Add amounts X1 and X2 together. The result is the required amount.