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HMRC internal manual

Venture Capital Schemes Manual

SEIS: withdrawal or reduction of relief: value received by investor: payments not to be included

ITA07/S257FH(3) and (4)

Certain payments are not to be treated as ‘value received’. These are as follows:

  • Repayment or reimbursement of travelling or other expenses which were incurred by the investor or an associate of the investor in the performance of that person’s duties as a director of the company,
  • Interest on money lent to the company or to a person connected with the company, providing that the interest is at a normal commercial rate,
  • Dividends or distributions which represent no more than a normal commercial return on the investment,
  • Any payment for the supply of goods which does not exceed the market value of those goods,
  • Any payment of rent for a property occupied by the company or by a person connected with the company, which does not exceed a reasonable commercial rent for the property,
  • Any necessary and reasonable remuneration paid for services rendered to the company or a person connected with the company, where the services are provided in the course of a trade or profession and the remuneration is taken into account in arriving at the profits of that trade or profession. ‘Services’ in this context excludes secretarial or managerial services, or services of a kind undertaken by the company or connected person to whom they are provided.