231Restriction on withdrawal of relief under section 224U.K.
(1)This section applies if, because of a repayment, any investment relief which is attributable under Schedule 15 to FA 2000 to any shares is withdrawn under paragraph 56(2) of that Schedule.
(2)For the purposes of this section “the relevant amount” is the amount determined by the formula—
where—
A is the amount of the repayment, and
B is the total amount of investment relief withdrawn because of the repayment.
(3)If the relevant amount does not exceed £1,000, the repayment is ignored for the purposes of section 224(1), unless repayment arrangements are in existence at any time in the period—
(a)beginning 12 months before the issue of the shares mentioned in subsection (1), and
(b)ending at the end of the issue date.
(4)For this purpose “repayment arrangements” means arrangements which provide—
(a)for a repayment by the issuing company or any subsidiary of that company, or
(b)for anyone to be entitled to such a repayment,
at any time.
(5)Subsection (4)(a) applies in relation to a subsidiary of the issuing company whether or not it is such a subsidiary when the arrangements were made.
(6)If the repayment is not ignored by virtue of subsection (3), the amount received because of the repayment is treated for the purposes of section 224(2) as an amount equal to the relevant amount.
(7)In this section—
(a)“investment relief” has the same meaning as in Schedule 15 to FA 2000 (corporate venturing scheme), and
(b)references to the withdrawal of investment relief include its reduction.