What happens to EIS investors if forced to sell in under three years?

Hi If we were to sell our company, but some EIS investors have not had their shares in the business for 3+ years, what happens to their relief? If they are forced to sell their shares as the whole business is being sold, will they have to pay back the 30% rebate if they have claimed it? Thanks, Max

Hi VORmax,
The legislation provides for the complete withdrawal of any relief attributable to shares if, by reason of some event, any of the conditions for the relief ceases to be satisfied.
Withdrawal of relief is usually by Special Assessment, but if you make an amendment (in time) to your Self Assessment that can be accepted, and any assessment already made can be vacated.
Please see guidance here:
VCM56030 - VCT: VCT winding-up: ‘front-end’ income tax relief
Thank you.