Commentary on Sections Overview
523.This Part provides income tax reductions to individuals who subscribe for shares in smaller unquoted trading (and some other) companies with which they are not connected.
524.A tax reduction is available where an individual provides additional full risk equity finance by subscribing money for shares and holds those shares, in most cases, for at least three years and the other conditions of the scheme are met.
525.The structure of the Part is as follows:
	The tax reduction and an overview (Chapter 1);
	Conditions relating to the investor (Chapter 2);
	Conditions relating to money raised and other matters (Chapter 3);
	Conditions relating to the issuing company (Chapter 4);
	Claiming the tax reduction and attributing the reduction to shares (Chapter 5);
	Withdrawing tax reductions that prove to be excessive (Chapter 6);
	Method of withdrawing tax reduction and related matters (Chapter 7); and
	Supplementary provisions (Chapter 8).
526.As set out in section 156(3), this Part has effect only in relation to shares issued on or after 6 April 2007 in accordance with section 1034(3). This is subject to provisions in Schedule 2, in particular the general provisions concerning the continuity of the law in Part 1 and the transitional provisions in Part 7 of that Schedule.
527.For example, the effect of Part 1 of Schedule 2 on section 218 (value received when there is more than one issue of shares) is that the section is read, in relation to shares issued before 6 April 2007, as a reference to the corresponding provision in the source legislation.
528.As a result of the commencement basis applying to Part 5, the minor changes in the law made by this Act will not affect shares issued before 6 April 2007, subject to one exception. This exception is the consequential amendment to section 312(2A) of ICTA, explained in the explanatory note on this section in Schedule 1.
529.Section 1034(3) also provides that consequential amendments and repeals associated with Part 5 have effect only in relation to shares issued on or after 6 April 2007. So enterprise investment scheme (EIS) shares and BES shares (BES is the common name for the business expansion scheme) issued before that date are unaffected.
530.Sections 292, 294, 295, 296 and 395 of ICTA have not been rewritten since these provisions are spent.