VCM23070 - EIS: deferral relief: shares issued on or after 6 April 1998: meaning of termination date

ITA07/S256

The termination date in relation to any eligible shares issued by a company is:

• the third anniversary of the date on which the shares were issued or,
• if the money raised by the issue was for the purpose of a trade (one that is a qualifying business activity within ITA07/S179(2)) and the company has not begun to carry on that trade on the date of issue of the shares, it is the third anniversary of the date on which the company begins to carry on the trade in question.

Example 1

Company A issued eligible shares on 1 June 2018. It used the money raised by the share issue for the purposes of a trade which commenced on 1 April 2018. The termination date in relation to the eligible shares is 1 June 2021.

Example 2

Company B issued eligible shares on 1 November 2017. It used the money raised by the share issue for the purposes of a trade which commenced on 1 December 2017. The termination date in relation to the eligible shares is 1 December 2020.