Income and Corporation Taxes Act 1988

[F2 303A Restriction on withdrawal of relief under section 303. U.K.

(1) Subsections (4) and (7) below apply where, by reason of a repayment, any investment relief which is attributable under Schedule 15 to the Finance Act 2000 to any shares is withdrawn under paragraph 56(2) of that Schedule.

[F3 (2) For the purposes of this section “repayment” has the meaning given in section 303AA(2) above.]

(3) For the purposes of this section “the relevant amount” is the amount determined by the formula—

Where—

X is the amount of the repayment, and

Y is the aggregate amount of investment relief withdrawn by reason of the repayment.

(4) Where the relevant amount does not exceed £1,000 the repayment shall be disregarded for the purposes of section 303(1), unless repayment arrangements are in existence at any time in the period—

(a) beginning one year before the shares mentioned in subsection (1) above are issued, and

(b) expiring at the end of the issue date of those shares.

(5) For this purpose “repayment arrangements” means arrangements which provide—

(a) for a repayment by the company that issued the shares (“the issuing company”) or any subsidiary of that company, or

(b) for anyone to be entitled to such a repayment,

at any time.

(6) Subsection (5)(a) above applies in relation to a subsidiary of the issuing company whether or not it is such a subsidiary—

(a) F4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(b) when the arrangements were made.

(7) Where the repayment is not disregarded by virtue of subsection (4) above, the amount receivable by reason of the repayment shall be treated for the purposes of section 303(1C)(a) as an amount equal to the relevant amount.

(8) F5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(9) In this section—

(a) “investment relief” has the same meaning as in [F6 Schedule 15 to the Finance Act 2000 (corporate venturing scheme)]; and

(b) references to the withdrawal of investment relief include its reduction.]

Textual Amendments

F2 S. 303A inserted (with effect in accordance with s. 63(4) of the amending Act) by Finance Act 2000 (c. 17), Sch. 16 para. 2(3)

F3 S. 303A(2) substituted (with effect in accordance with Sch. 15 para. 40(3) of the amending Act) by Finance Act 2001 (c. 9), Sch. 15 para. 21(a)

F4 S. 303A(6)(a) repealed (with effect in accordance with Sch. 18 para. 8(2) of the repealing Act) by Finance Act 2004 (c. 12), Sch. 18 para. 8(1), Sch. 42 Pt. 2(13), Note 1

F5 S. 303A(8) repealed (with effect in accordance with Sch. 15 para. 40(3) of the repealing Act) by Finance Act 2001 (c. 9), Sch. 15 para. 21(b), Sch. 33 Pt. 2(3), Note 2

F6 Words in s. 303A(9)(a) substituted (with effect in accordance with Sch. 15 para. 40(3) of the amending Act) by Finance Act 2001 (c. 9), Sch. 15 para. 21(c)