Shares issued too late

Conditions for a company director to qualify for enterprise investment scheme relief

The taxpayer was appointed as a paid director of AR on 1 February 2008. In the previous month he made a qualifying investment in the company under the enterprise investment scheme (EIS). He made further qualifying investments in July 2008 August 2010 April 2011 and February 2013.

He claimed EIS relief in his 2010/11 2011/12 and 2012/13 self-assessment tax returns for the shares he bought in 2011 and 2013. HMRC refused the claim and issued a discovery assessment for 2010/11.

The taxpayer appealed.

The First-tier Tribunal said HMRC had to establish that the conditions for a discovery assessment had been met. It had failed to do so so the appeal against the assessment was allowed.

On whether EIS relief was due the tribunal said the company met the criteria for relief but ...