Taxes Consolidation Act 1997 section 251

Restriction of relief to individuals on loans applied in acquiring shares in companies where a claim for "BES relief" or "film relief" is made in respect of amount subscribed for shares

Section 251 restricts tax relief for interest on loans used to acquire shares in a company where the investor has also claimed relief under the Employment Investment Incentive Scheme (EIIS) or film relief in respect of the same shares.

• Interest relief normally available under sections 248 and 250 for loans to acquire ordinary shares in a company is denied where the investor also claims EIIS or film relief on the same investment.
• The restriction applies to shares issued on or after 20 April 1990 where a claim for EIIS relief (including seed capital relief) under Part 16 is made in respect of the amount subscribed for the shares.
• The restriction also applies to shares issued on or after 6 May 1993 where a claim for film relief under section 481 is made in respect of the amount subscribed for the shares.
• The key trigger is that the EIIS or film relief claim must relate to the amount subscribed for the shares — if it does, interest relief on the borrowings used to acquire those shares is blocked.