Section 257QD | Cases where maximum SI relief not obtained

(1)If the investor's liability to income tax is reduced for any tax year in respect of the investment and—

(a)the amount of the reduction (“A”), is less than

(b)the amount (“B”) which is equal to income tax at the SI rate for that tax year on the amount on which the investor has SI relief in the case of the investment,

section 257Q(2) has effect in relation to any value received as if the amount referred to as “V” were reduced by multiplying it by—

(2)If the amount of SI relief attributable to the investment has been reduced before the SI relief was obtained, the amount referred to in subsection (1) as “A” is to be treated for the purposes of that subsection as the amount that it would have been without that reduction.

(3)Subsection (2) does not apply to a reduction of SI relief as a result of section 257N(5) (attribution of SI relief where there is a corresponding issue of bonus shares).