![istock-513879800_fmt](https://www.taxation.co.uk/images/default-source/files/field/image/istock-513879800_fmt.png?sfvrsn=f677f3a_2)
More than meets the eye?
KEY POINTS
- A university spin-out company was formed to develop and commercialise automotive products.
- In September 2014 Oxbotica issued 100 000 £0.01 ordinary shares to five original subscribers.
- HMRC’s initial view was that subscriber shares would rarely be eligible for relief under the seed enterprise investment scheme.
- Was the money raised from the share issue too small to be of meaningful use?
- The tribunal’s view was that HMRC’s argument regarding the amount of the investment would lead to impossible uncertainty.
- Is it time for the venture capital schemes to be reformed to make them more user-friendly?
At first sight the issues addressed by the First-tier Tribunal’s decision in Oxbotica Ltd (TC6538) appear straightforward but there is more to this case than meets the eye....
Please reach out to customer services at +44 (0) 330 161 1234 or 'customer.services@lexisnexis.co.uk' for further assistance.