EXPLANATORY NOTE
(This note is not part of the Regulations)
Sections 809VA to 809VO of the Income Tax Act 2007 (ITA 2007), as inserted by Schedule 12 to the Finance Act 2012, provide for the introduction of the business investment relief. A qualifying investment (as defined in section 809VC ITA 2007), or money or other property brought to the UK to make such an investment, will not be treated as a taxable remittance under Chapter A1 of Part 14 of ITA 2007 as long as certain conditions are met.
An individual who makes a qualifying investment must take appropriate mitigation steps (as defined in section 809VI ITA 2007) where a potentially chargeable event (as defined in section 809VH ITA 2007) occurs in relation to that investment. Failure to take such steps within the grace period (as defined in section 809VJ ITA 2007) will trigger a taxable remittance.
Section 809VJ(4) ITA 2007 provides that an officer of Revenue and Customs may agree in a particular case to extend the grace period allowed for an appropriate mitigation step in circumstances specified in regulations made by the Commissioners for Her Majesty’s Revenue and Customs.
These Regulations prescribe the circumstances in which the grace period may be extended. They come into force on 10 August 2012 and have effect in relation to qualifying investments made on or after 6 April 2012.
A Tax Information and Impact Note covering this instrument was published on 6 December 2011 alongside draft Finance Bill 2012 clauses and is available on the HMRC website at http://www.hmrc.gov.uk/thelibrary/tiins.htm . It remains an accurate summary of the impacts that apply to this instrument.