F1PART 5BTax relief for social investments
CHAPTER 7Withdrawal or reduction of SI relief
Value received by the investor
257QEffect of the investor receiving value from the social enterprise
1
If the investor receives any value from the social enterprise at any time in the longer applicable period, any SI relief given in respect of the investment must—
a
if it is greater than the amount given by the formula set out in subsection (2), be reduced by that amount, and
b
in any other case, be withdrawn.
2
The formula is—
where—
V is the amount of the value received, and
R is the SI rate for the tax year for which the SI relief was given.
3
Subsections (1) and (2) are subject to—
a
section 257QA (value received: insignificant receipts),
b
section 257QB (value received where there is more than one issue of investments),
c
section 257QC (value received where part of investment treated as made in previous tax year),
d
section 257QD (cases where maximum SI relief not obtained),
e
section 257QG (receipts of value by and from connected persons etc), and
f
section 257QH (receipt of replacement value).
4
Sections 257QB to 257QD are to be applied in the order in which they appear in this Part.
5
Value received is to be ignored, for the purposes of this section, so far as SI relief attributable to the investment has already been withdrawn or reduced on its account.
6
For the purposes of this section and sections 257QA to 257QI, an individual—
a
who acquires any part of the investment, and
b
who does so on such a transfer as is mentioned in section 257T (spouses or civil partners),
is treated as the investor.
Pt. 5B inserted (17.7.2014) by Finance Act 2014 (c. 26), Sch. 11 para. 1