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Time limits |
| | 62. - (1) The Inland Revenue may not-
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(a) make an assessment for withdrawing or reducing the investment relief attributable to any of the relevant shares, or |
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(b) give a notice under paragraph 60(3)(a)(ii) or (b), |
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more than six years after the end of the relevant accounting period.
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(2) In sub-paragraph (1) "the relevant accounting period" means-
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(a) the accounting period in which the time mentioned in paragraph 36(1) (time limit for employing money raised) falls, or |
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(b) the accounting period in which the event which causes the investment relief to be withdrawn or reduced occurs, |
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whichever is later.
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(3) This paragraph is subject to sub-paragraphs (2) and (3) of paragraph 46 of Schedule 18 to the Finance Act 1998 (fraud or negligence).
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Those sub-paragraphs shall apply in relation to any notice under paragraph 60(3)(a)(ii) or (b) as if it were an assessment relating to the accounting period to which any assessment made by virtue of the notice would relate.
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Interest |
| | 63. - (1) This paragraph applies where-
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(a) investment relief is withdrawn or reduced by virtue of- |
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(i) a failure to meet any of the requirements of paragraphs 5 to 10 or of Part III of this Schedule (requirements to be met in relation to investing company or issuing company);
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(ii) paragraph 46 (disposal of shares);
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(iii) paragraph 47 (value received by investing company);
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(iv) paragraph 56 (value received by other persons); or
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(v) paragraph 59 (put options and call options);
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(b) as a result, an assessment to corporation tax is made by virtue of paragraph 60; and |
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(c) the relevant event occurs after the date when the tax assessed became due and payable or, if there is more than one such date, the latest of them. |
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(2) Section 87A of the Taxes Management Act 1970 (interest on overdue corporation tax etc.) has effect in relation to the tax assessed as if it became due and payable on the date the relevant event occurred.
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(3) In this paragraph references to "the relevant event" are to the event by virtue of which the relief is withdrawn or reduced as mentioned in sub-paragraph (1)(a).
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Information to be provided by the investing company |
| | 64. - (1) This paragraph applies where-
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(a) the investing company has obtained investment relief in respect of the relevant shares, and |
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(b) an event occurs by reason of which- |
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(i) the company is not a qualifying investing company in relation to those shares,
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(ii) the investment relief falls to be withdrawn or reduced by virtue of paragraph 47 (receipt of value by investing company), or
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(iii) the investment relief falls to be withdrawn or reduced by virtue of paragraph 59 (put options and call options).
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(2) Where this paragraph applies the investing company must give the Inland Revenue a notice containing particulars of the event.
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(3) Where the investing company-
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(a) is required under this paragraph to give notice of a receipt of value (within paragraph 49(1)), and |
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(b) has knowledge of any replacement value received (or expected to be received) from the original recipient by the original supplier by reason of a qualifying receipt, |
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the notice shall include particulars of that receipt of replacement value (or expected receipt).
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In this paragraph "replacement value", "original recipient", "original supplier" and "qualifying receipt" shall be construed in accordance with paragraph 54.
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(4) Subject to sub-paragraph (5), any notice required to be given by the company under sub-paragraph (2) must be given-
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(a) within 60 days after the event, or |
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(b) where the event is the receipt of value by a person connected with the company (see paragraph 53), within 60 days after the company's coming to know of the event. |
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(5) In a case within sub-paragraph (1)(b)(ii), where the event occurred before the issue of the relevant shares, any notice required to be given by the investing company under sub-paragraph (2) must be given-
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(a) within 60 days after the issue of the shares, or |
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(i) the event is the receipt of value by a person connected with the company (see paragraph 53), and
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(ii) the company comes to know of the event on or after the issue of the shares,
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within 60 days after the company's coming to know of the event.
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Information to be provided by the issuing company etc. |
| | 65. - (1) This paragraph applies where-
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(a) the issuing company has provided the Inland Revenue with a compliance statement in respect of an issue of shares, and |
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(b) an event occurs by reason of which- |
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(i) the issuing company is not a qualifying issuing company in relation to any of the shares included in that issue, or would not be such a company if investment relief had been obtained in respect of the shares in question,
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(ii) the requirements of Part IV of this Schedule are not met in respect of any of the shares included in that issue, or would not be met if investment relief had been obtained in respect of the shares in question, or
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(iii) paragraph 47 (value received by investing company) or 56 (value received by other persons) has effect to cause any investment relief attributable to any of the shares included in that issue to be withdrawn or reduced, or would have such an effect if investment relief had been obtained in respect of the shares in question.
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(2) Where this paragraph applies-
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(b) any person connected with the company who has knowledge of the matters mentioned in sub-paragraph (1), |
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must give the Inland Revenue a notice containing particulars of the event.
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(3) Sub-paragraph (3) of paragraph 64 shall apply in relation to a person required to give notice under this paragraph of a receipt of value within paragraph 49(1) as it applies to a company required to give such a notice under paragraph 64.
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(4) Subject to sub-paragraph (6) any notice required to be given by a company under sub-paragraph (2)(a) must be given-
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(a) within 60 days after the event, or |
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(i) a failure by the company to meet the requirement of paragraph 18 (the "individual-owners requirement") in respect of any of those shares; or
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(ii) a receipt of value within paragraph 49(1) from a person connected with the company (see paragraph 53),
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within 60 days after the company's coming to know of the event.
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(5) Subject to sub-paragraph (6) any notice required to be given by a person within sub-paragraph (2)(b) must be given within 60 days after the person's coming to know of the event.
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(6) In a case within sub-paragraph (1)(b)(iii), any notice required to be given by a person under sub-paragraph (2) must be given within 60 days after the issue of the shares if-
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(a) the event occurred, and |
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(b) the person came to know of it, |
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before those shares were issued.Power of Inland Revenue to obtain information
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| | 66. - (1) This paragraph applies where the Inland Revenue have reason to believe that a company or other person-
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(a) has not given a notice which it is required to give under paragraph 64 or 65 in respect of any event, or |
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(b) has given or received value (within the meaning of paragraph 49(1)) 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. |
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(2) The Inland Revenue may by notice require the person concerned to furnish them, within such time as the Inland Revenue may direct (not being less than 60 days), with such information relating to the event as the Inland Revenue may reasonably require for the purposes of this Schedule.
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(3) In sub-paragraph (1)(b) the reference to an amount of insignificant value shall be construed in accordance with paragraph 47(7)(b).
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