Commentary on Sections Overview Overview Section 209: Disposal of shares
672.This section withdraws or reduces EIS relief if the investor disposes of relevant shares before the end of period A relating to those shares. It is based on sections 299(1), (2) and (8) and 304(1) of ICTA.
673.EIS relief is only reduced to the extent that the relief is attributable to the shares which are the subject of the disposal.
674.Subsection (4) provides an exception in the case of certain disposals between spouses or civil partners.
675.Section 299(3) of ICTA is not rewritten. It is not needed because other provisions identify the shares that are disposed of and calculate the appropriate proportion of the relief attributable to those shares.