Zodiac

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?

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