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HMRC internal manual

Venture Capital Schemes Manual

HM Revenue & Customs
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Seed Enterprise Investment Scheme (SEIS): Re-investment Relief: shares transferred to spouse or civil partner


Where the investor in shares to which re-investment relief is attributable transfers some or all of the shares to their spouse or civil partner at a time when they are living together, section 257FA(4) ITA07 prevents a withdrawal of SEIS relief on the disposal and re-investment relief remains attributable to the shares acquired by the transferee.

If, after the transfer, SEIS relief is withdrawn or reduced, any chargeable gain accruing as a result (see VCM45090) is treated as accruing to the transferee spouse or civil partner in respect of the shares which they hold, and the amount of any gain treated as accruing to the original investor is based on only the shares they still hold.


An investor subscribes £50,000 for SEIS shares that are issued to him in 2012-13. He claims and obtains SEIS relief in respect of the shares. He also claims, in respect of that share subscription, re-investment relief in relation to a chargeable gain of £40,000 from the disposal of a property in 2012-13. His chargeable gain is reduced to nil.

He transfers half his shares to his wife following which there is a return of value to shareholders. This return of value requires £30,000 of the re-investment relief to be withdrawn.

A 2012-13 chargeable gain £15,000 is treated as accruing to the investor. A 2012-13 chargeable gain £15,000 is treated as accruing to his wife.