Introduction Details of the Section
2.Subsections 2 and 3 make minor amendments to sections 29 and 32 of ITA, to clarify how income tax liability is to be calculated in certain circumstances where SEIS relief has been given. These amendments take effect for the tax year 2013/14 and subsequent tax years.
3.Subsection 4 amends the independence requirement at section 257DG(2) ITA, in respect of shares issued on or after 6 April 2013. It does so by introducing the concept of an “on the shelf period”, during which a company will not be disqualified by virtue of being under the control of another company. The “on the shelf period” is the period during which a company has issued only subscriber shares and has not yet commenced any trade or business.