ANNEX 1:: MINOR CHANGES IN THE LAW MADE BY THE BILL Repayment etc of share capital to someone other than the investor
Section 303 of ICTA withdraws or reduces EIS relief from the investor in cases where someone other than the investor receives certain repayments etc of share capital within a certain period.
In this case section 303(1C) also refers (like section 300(1B) of ICTA) both to:
“lower rate for the year … for which the relief was given”
and:
“section 299(4) applies for the purposes of this subsection as it applies for the purposes of [section 299(2)].”
Carry back cases may involve different lower tax rates for the two years for which the investor obtains EIS relief (and the investor may have not have obtained maximum relief for one or both of the years involved).
Section 228 of this Act in relation to repayments etc of share capital to someone other than the investor, also deals explicitly with carry back cases. This explicit treatment prevents an alternative construction (whether adverse or favourable to taxpayers) being put forward as to what happens in such cases.