Section 257FO | Section 257FN: supplementary

(1)The receipt of the replacement value by the original supplier is ignored for the purposes of section 257FN(1) to the extent to which it has previously been set (under that section) against a receipt of value to prevent any reduction or withdrawal of SEIS relief under section 257FE.

(2)The receipt of the replacement value by the original supplier (“the event”) is ignored for the purposes of section 257FN if—

(a)the event occurs before period A relating to the relevant shares,

(b)if the event occurs after the time the original recipient receives the original value, it does not occur as soon after that time as is reasonably practicable in the circumstances, or

(c)if an appeal has been brought by the investor against an assessment to withdraw or reduce any SEIS relief attributable to the relevant shares because of the receipt of the original value, the event occurs more than 60 days after the day on which the amount of relief which falls to be withdrawn has been finally determined.

But nothing in section 257FN or this section requires the replacement value to be received after the original value.

(3)This subsection applies if—

(a)the receipt of the replacement value by the original supplier is a qualifying receipt for the purposes of section 257FN(1),

(b)in consequence of the receipt, any receipts of value are ignored for the purposes of section 257FE as that section applies in relation to the shares in question or any other shares subscribed for by the investor, and

(c)the event which gives rise to the receipt is (or includes) a subscription for shares by—

(i)the investor, or

(ii)any person who at any time in period A relating to the relevant shares is an associate of the investor (whether or not the person is such an associate at the material time).

(4)If subsection (3) applies, the person who subscribes for the shares is not to be eligible for any SEIS relief in relation to those shares or any other shares in the same issue.

(5)In this section “the original recipient”, “the original supplier” and “replacement value” have the same meaning as in section 257FN.