EIS tax relief following negligible value sale

If an EIS investment is sold within 3 years at a negligible value, does the original tax relief need to be repaid? If so this would seem somewhat inconsistent as I understand that such tax relief would not need to be repaid if the company in which such investment is made becomes bankrupt or otherwise ceases trading within 3 years

Hi Simon Jardine,
Yes, any tax relief received needs to be clawed back:
VCM15010 - EIS: income tax relief: withdrawal or reduction of EIS relief: overview
Thank you. 

Thanks. The link you shared leads to this: “VCM15015 - EIS: income tax relief: withdrawal or reduction of EIS relief: disposal of shares ITA07/S209 Where relief has to be reduced following a disposal, the amount of the reduction is: the amount of relief attributable to the shares, or a sum equal to tax at the original EIS rate (20% or 30% depending on the year the shares were acquired) on the amount or value of the consideration received, whichever is the smaller.” If the sale is for a negligible value then the ‘value of the consideration received’ is zero, so surely no tax relief should need to be repaid?

Hi,
Please refer to further guidance at HS286 Negligible value claims and Income Tax losses on disposals of shares you have subscribed for in qualifying trading companies (2024)
Thank you.