F1PART 5BTax relief for social investments
CHAPTER 7Withdrawal or reduction of SI relief
Repayments etc of investments to other persons
257QOMaximum relief not obtained for share issue
1
This section applies if section 257QJ(2) applies to SI relief attributable to shares held by the investor and—
a
the amount of the reduction (“D”) in the investor's liability to income tax for any tax year in respect of the shares, is less than
b
the amount given by—
where—
I is the amount on which the investor claims SI relief in respect of the investment, and
R is the SI rate for the tax year for which the SI relief was given.
2
Section 257QJ(3) has effect as if the amount referred to as A were reduced by multiplying it by the fraction—
3
If the amount of SI relief attributable to any of the shares has been reduced before the SI relief was obtained, the amount referred to in subsections (1) and (2) as D is to be treated for the purposes of those subsections as the amount it would have been without that reduction.
4
Subsection (3) does not apply to a reduction of SI relief by virtue of section 257N(5) (attribution of SI relief where there is a corresponding issue of bonus shares).
Pt. 5B inserted (17.7.2014) by Finance Act 2014 (c. 26), Sch. 11 para. 1