Section 257QO | Maximum relief not obtained for share issue

From legislation.gov.uk

(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—

Formula

I \times R

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—

Formula

\frac{D}{I \times R}

(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).