|
| |
|
(a) | to whom an interest amounting in total to more than a half |
| |
share in the trade (as previously carried on) belonged at any |
| |
| |
(b) | who is a person or group of persons to whom such an interest |
| |
in the trade carried on by the company belongs or has, at any |
| 5 |
| |
(3) | This subsection applies to any person or group of persons who— |
| |
(a) | controls or, at any time in period A, has controlled the |
| |
| |
(b) | at any such time, controlled another company which |
| 10 |
previously carried on the trade. |
| |
(4) | For the purposes of subsection (2)— |
| |
(a) | for the purposes of determining the person to whom a trade |
| |
belongs and, if a trade belongs to two or more persons, their |
| |
respective shares in that trade— |
| 15 |
(i) | apply section 941(6) of CTA 2010, and |
| |
(ii) | an interest in a trade belonging to a company may be |
| |
treated in accordance with any of the options set out |
| |
in section 942 of that Act, and |
| |
(b) | any interest, rights or powers of a person who is an associate |
| 20 |
of another person are treated as those of that other person. |
| |
(5) | In this section “trade” includes any business or profession, and |
| |
references to a trade previously carried on include references to part |
| |
| |
257FQ | Acquisition of share capital |
| 25 |
(1) | Any SEIS relief attributable to any shares in a company held by an |
| |
individual is withdrawn if— |
| |
(a) | the company comes to acquire all of the issued share capital |
| |
of another company at any time in period A, and |
| |
(b) | the individual is a person, or one of a group of persons, to |
| 30 |
whom subsection (2) applies. |
| |
(2) | This subsection applies to any person or group of persons who— |
| |
(a) | controls or, at any time in period A, has controlled the |
| |
| |
(b) | at any such time, controlled the other company. |
| 35 |
257FR | Relief subsequently found not to have been due |
| |
(1) | Any SEIS relief obtained by the investor which is subsequently |
| |
found not to have been due must be withdrawn. |
| |
(2) | SEIS relief obtained by the investor in respect of the relevant shares |
| |
may not be withdrawn on the ground— |
| 40 |
(a) | that the requirements of sections 257CB and 257CC (the |
| |
purpose of the issue and use of money raised requirements) |
| |
are not met in respect of the shares, or |
| |
(b) | that the issuing company is not a qualifying company in |
| |
relation to the shares (see Chapter 4), |
| 45 |
| unless the requirements of subsection (3) are met. |
| |
|
| |
|
| |
|
(3) | The requirements of this subsection are met if either— |
| |
(a) | the issuing company has given notice under section 257GF |
| |
(information to be provided by issuing company etc) in |
| |
relation to the relevant issue of shares, or |
| |
(b) | an officer of Revenue and Customs has given notice to that |
| 5 |
company stating the officer’s opinion that, because of the |
| |
ground in question, the whole or any part of the SEIS relief |
| |
obtained by any individual in respect of shares included in |
| |
the relevant issue of shares was not due. |
| |
(4) | In this section “the relevant issue of shares” means the issue of shares |
| 10 |
in the issuing company which includes the relevant shares. |
| |
| |
Withdrawal or reduction of SEIS relief: procedure |
| |
| |
257G | Assessments for the withdrawal or reduction of SEIS relief |
| 15 |
| If any SEIS relief which has been obtained falls to be withdrawn or |
| |
reduced under Chapter 6, it must be withdrawn or reduced by the |
| |
making of an assessment to income tax for the tax year for which the |
| |
| |
257GA | Appeals against section 257FR(3)(b) notices |
| 20 |
| For the purposes of the provisions of TMA 1970 relating to appeals, |
| |
the giving of notice by an officer of Revenue and Customs under |
| |
section 257FR(3)(b) is taken to be a decision disallowing a claim by |
| |
| |
257GB | Time limits for assessments |
| 25 |
(1) | An officer of Revenue and Customs may— |
| |
(a) | make an assessment for withdrawing or reducing the SEIS |
| |
relief attributable to any of the relevant shares, or |
| |
(b) | give a notice under section 257FR(3), |
| |
| at any time not more than 6 years after the end of the relevant tax |
| 30 |
| |
(2) | In subsection (1) “the relevant tax year” means— |
| |
(a) | the tax year in which period B ends, or |
| |
(b) | the tax year in which the event which causes the SEIS relief to |
| |
be withdrawn or reduced occurs, |
| 35 |
| |
(3) | Subsection (1) is without prejudice to section 36(1A) of TMA 1970 |
| |
(loss of tax brought about deliberately etc). |
| |
257GC | Cases where assessments not to be made |
| |
(1) | No assessment for withdrawing or reducing SEIS relief in respect of |
| 40 |
shares issued to an individual may be made because of an event |
| |
occurring after the individual’s death. |
| |
|
| |
|
| |
|
(2) | Subsection (3) applies if an individual has, by a disposal or disposals |
| |
to which section 257FA(3) applies, disposed of all shares which— |
| |
(a) | have been issued to the individual by the issuing company, |
| |
| |
| 5 |
(i) | to which SEIS relief is attributable, or |
| |
(ii) | in relation to which period A has not come to an end. |
| |
(3) | No assessment for withdrawing or reducing SEIS relief in respect of |
| |
those shares may be made because of any subsequent event unless |
| |
the event occurs at a time when the individual— |
| 10 |
(a) | has a substantial interest in the company within the meaning |
| |
| |
(b) | is an employee of the issuing company, or |
| |
(c) | is a director of the issuing company. |
| |
| 15 |
257GD | Date from which interest is chargeable |
| |
(1) | In its application to an assessment made by virtue of section 257G in |
| |
the case of relief withdrawn or reduced by virtue of a provision listed |
| |
in subsection (2), section 86 of TMA 1970 (interest on overdue income |
| |
tax) has effect as if the relevant date were 31 January next following |
| 20 |
the tax year in which the assessment is made. |
| |
| |
(a) | section 257BB (no substantial interest in the issuing |
| |
| |
(b) | section 257BD (no linked loan requirement), |
| 25 |
(c) | sections 257DA to 257DN (Chapter 4 requirements), |
| |
(d) | section 257FA (disposal of shares), |
| |
(e) | section 257FD (put options), |
| |
(f) | section 257FE (receipt of value by the investor), |
| |
(g) | section 257FP (acquisition of a trade or trading asset), |
| 30 |
(h) | section 257FQ (acquisition of share capital). |
| |
| |
257GE | Information to be provided by the investor |
| |
(1) | This section applies if the investor has obtained SEIS relief in respect |
| |
of the relevant shares, and an event occurs as a result of which— |
| 35 |
(a) | the investor is not a qualifying investor in relation to the |
| |
| |
(b) | the SEIS relief falls to be withdrawn or reduced by virtue of |
| |
section 257BD (no linked loans requirement), |
| |
(c) | the SEIS relief falls to be withdrawn or reduced under— |
| 40 |
(i) | section 257FA (disposal of shares), |
| |
(ii) | section 257FC (call options), or |
| |
(iii) | section 257FD (put options), or |
| |
|
| |
|
| |
|
(d) | the SEIS relief falls to be withdrawn or reduced under section |
| |
257FE (receipt of value by the investor), or would fall to be so |
| |
withdrawn or reduced but for section 257FN (receipt of |
| |
| |
(2) | The investor must within 60 days of coming to know of the event |
| 5 |
give a notice to an officer of Revenue and Customs containing |
| |
particulars of the event. |
| |
| |
(a) | is required under this section to give notice of a receipt of |
| |
value which is within section 257FE, or would be within that |
| 10 |
section but for section 257FN, and |
| |
(b) | has knowledge of any replacement value received (or |
| |
expected to be received) because of a qualifying receipt, |
| |
| the notice must include particulars of that receipt of replacement |
| |
value (or expected receipt). |
| 15 |
(4) | In subsection (3) “qualifying receipt” and “replacement value” are to |
| |
be read in accordance with section 257FN. |
| |
257GF | Information to be provided by the issuing company etc |
| |
(1) | This section applies if the issuing company has provided an officer |
| |
of Revenue and Customs with a compliance statement in respect of |
| 20 |
an issue of shares and an event occurs as a result of which— |
| |
(a) | the requirement of section 257CC (spending of the money |
| |
raised) is not met in respect of any of the shares included in |
| |
the issue, or would not be met if SEIS relief had been obtained |
| |
in respect of the shares in question, |
| 25 |
(b) | any provision of Chapter 4 has effect to prevent the issuing |
| |
company being a qualifying company in relation to any of the |
| |
shares included in the issue, or would have such an effect if |
| |
SEIS relief had been obtained in respect of the shares in |
| |
| 30 |
(c) | any of the provisions of Chapter 6 mentioned in subsection |
| |
(2) has effect to cause any SEIS relief attributable to any of the |
| |
shares included in the issue to be withdrawn or reduced, or— |
| |
(i) | would have such an effect if SEIS relief had been |
| |
obtained in respect of the shares in question, or |
| 35 |
(ii) | in the case of section 257FE, would have such an effect |
| |
but for section 257FN (receipt of replacement value). |
| |
| |
(a) | section 257FE (value received by the investor), |
| |
(b) | section 257FP (acquisition of a trade or trading asset), and |
| 40 |
(c) | section 257FQ (acquisition of share capital). |
| |
(3) | If this section applies— |
| |
(a) | the issuing company, and |
| |
(b) | any person connected with the issuing company who has |
| |
knowledge of the matters mentioned in subsection (1), |
| 45 |
| must give a notice to an officer of Revenue and Customs containing |
| |
particulars of the event. |
| |
|
| |
|
| |
|
(4) | Any notice required to be given by the issuing company under |
| |
subsection (3)(a) must be given— |
| |
(a) | within 60 days of the event, or |
| |
(b) | if the event is a receipt of value within section 257FH(2) from |
| |
a person connected with the company (see section 257FM), |
| 5 |
within 60 days of the company coming to know of the event. |
| |
(5) | Any notice required to be given by a person under subsection (3)(b) |
| |
must be given within 60 days of the person coming to know of the |
| |
| |
| 10 |
(a) | is required under this section to give notice of a receipt of |
| |
value which is within section 257FE, or would be within that |
| |
section but for section 257FN, and |
| |
(b) | has knowledge of any replacement value received (or |
| |
expected to be received) because of a qualifying receipt, |
| 15 |
| the notice must include particulars of that receipt of replacement |
| |
value (or expected receipt). |
| |
(7) | In subsection (6) “qualifying receipt” and “replacement value” are to |
| |
be read in accordance with section 257FN. |
| |
257GG | Power to require information where section 257GE or 257GF applies |
| 20 |
| |
(1) | This section applies if an officer of Revenue and Customs has reason |
| |
to believe that a person— |
| |
(a) | has not given a notice which the person is required to give |
| |
under section 257GE or 257GF in respect of any event, or |
| 25 |
(b) | has given or received value within the meaning of section |
| |
257FH(2) or (8) which, but for the fact that the amount given |
| |
or received was an amount of insignificant value, would have |
| |
triggered a requirement to give such a notice. |
| |
(2) | The officer may by notice require the person concerned to supply the |
| 30 |
officer, within such time as the officer may specify in the notice, with |
| |
such information relating to the event as the officer may reasonably |
| |
require for the purposes of this Part. |
| |
(3) | The period specified in a notice under subsection (2) must be at least |
| |
| 35 |
(4) | In subsection (1)(b), the reference to an amount of insignificant value |
| |
is construed in accordance with section 257FG(2). |
| |
257GH | Power to require information in other cases |
| |
(1) | Subsection (2) applies if SEIS relief is claimed in respect of shares in |
| |
a company, and an officer of Revenue and Customs has reason to |
| 40 |
believe that it may not be due because of any such arrangements or |
| |
scheme as is mentioned in— |
| |
(a) | section 257BC (no related investment arrangements), |
| |
(b) | section 257BE or 257DB(2) or (4) (no tax avoidance), |
| |
(c) | section 257CD(1) (no pre-arranged exits), |
| 45 |
(d) | section 257CF (no disqualifying arrangements), |
| |
|
| |
|
| |
|
(e) | section 257DB(4) (winding up, administration etc), or |
| |
(f) | section 257DG(1) or (2) (conditions ceasing to be met). |
| |
(2) | The officer may by notice require any person concerned to supply |
| |
the officer within such time as may be specified in the notice with— |
| |
(a) | a declaration in writing stating whether or not, according to |
| 5 |
the information which that person has or can reasonably |
| |
obtain, any such arrangement or scheme exists or has existed, |
| |
| |
(b) | such other information as the officer may reasonably require |
| |
for the purposes of the provision in question and as that |
| 10 |
person has or can reasonably obtain. |
| |
(3) | The period specified in a notice under subsection (2) must be at least |
| |
| |
(4) | For the purposes of subsection (2), in a case falling within a provision |
| |
listed in column 1 of the following table, the person concerned is |
| 15 |
given by the corresponding entry in column 2 of the table. |
| |
| | | | | | | The claimant, the company and any |
| | | | | person controlling the company |
| | | | | | | 20 | | | The claimant, the company and any |
| | | | | person connected with the company |
| | | | | The claimant, the company, any |
| | | | | person controlling the company and |
| | | | | any person who an officer of Revenue |
| | 25 | | | and Customs has reason to believe |
| | | | | may be a party to the arrangements in |
| | | | | | | | | | The claimant, the company, any other |
| | | | | company in question and any person |
| | 30 | | | controlling the company or any other |
| | | | | | | | | | The company and any person |
| | | | | | | |
|
| References in this subsection to the claimant include references to |
| 35 |
any person to whom the claimant appears to have made such a |
| |
transfer as is mentioned in section 257H (spouses or civil partners) of |
| |
any of the shares in question. |
| |
(5) | If SEIS relief has been obtained in respect of shares in a company— |
| |
(a) | any person who receives from the company any payment or |
| 40 |
asset which may constitute value received (by the person or |
| |
another) for the purposes of section 257FE, and |
| |
|
| |
|
| |
|
(b) | any person on whose behalf such a payment or asset is |
| |
| |
| must, if so required by an officer of Revenue and Customs, state |
| |
whether the payment or asset so received is received on behalf of any |
| |
other person and, if so, the name and address of that other person. |
| 5 |
(6) | If SEIS relief has been claimed in respect of shares in a company— |
| |
(a) | any person who holds or has held shares in the company, and |
| |
(b) | any person on whose behalf any such shares are or were held, |
| |
| must, if so required by an officer of Revenue and Customs, state |
| |
whether the shares so held are or were held on behalf of any other |
| 10 |
person and, if so, the name and address of that other person. |
| |
257GI | Obligations of secrecy |
| |
| No obligation of secrecy imposed by statute or otherwise prevents an |
| |
officer of Revenue and Customs from disclosing to a company that |
| |
SEIS relief has been obtained or claimed in respect of a particular |
| 15 |
number or proportion of its shares. |
| |
| |
Supplementary and general |
| |
| |
257H | Transfers between spouses or civil partners |
| 20 |
(1) | This section applies if— |
| |
(a) | shares to which an amount of SEIS relief is attributable were |
| |
issued to an individual (“A”), |
| |
(b) | A transferred the shares to another individual (“B”) during |
| |
| 25 |
(c) | A was married to, or was the civil partner of, B at the time of |
| |
| |
(d) | section 257FA (disposal of shares) does not apply to the |
| |
| |
(2) | This Part has effect, in relation to any subsequent disposal or other |
| 30 |
| |
(a) | B were the individual who had subscribed for the shares, |
| |
(b) | the amount that B had subscribed for the shares were the |
| |
amount that A had subscribed for them, |
| |
(c) | B’s liability to income tax had been reduced in respect of the |
| 35 |
shares for the same tax year as that for which A’s was so |
| |
| |
(d) | the amount by which B’s liability to income tax had been |
| |
reduced in respect of the shares were the same as that by |
| |
which A’s liability to income tax had been so reduced, and |
| 40 |
(e) | that amount of SEIS relief had continued to be attributable to |
| |
the shares despite the transfer. |
| |
(3) | If the amount of SEIS relief attributable to the shares had been |
| |
reduced before the relief was obtained by A— |
| |
|
| |
|