Income and Corporation Taxes Act 1988

306 Claims. U.K.

M1 (1) A claim for relief in respect of eligible shares issued by a company in any year of assessment shall be made—

(a) not earlier than the end of the period of four months mentioned in section [F1 289A(7)(a), (b) or (c)], as the case may be; and

[F2 (b) not later than twelve months after an inspector authorises the issue of a certificate for the purposes of subsection (2) below].

(2) A claim for relief in respect of eligible shares in a company shall not be allowed unless it is accompanied by a certificate issued by the company in such form as the Board may direct and certifying that the conditions for the relief, so far as applying to the company and the trade, are satisfied in relation to those shares.

(3) Before issuing a certificate for the purposes of subsection (2) above a company shall furnish the inspector with a statement to the effect that it satisfies the conditions for the relief, so far as they apply in relation to the company and the trade, and has done so at all times since the beginning of the relevant period.

[F3 (3A) A company may not furnish an inspector with a statement in respect of any shares issued in any year of assessment—

(a) later than two years after the end of that year of assessment, or

(b) if the period of four months referred to in subsection (1)(a) above ended after the end of that year, later than two years after the end of that period,

but section 289B(5) shall not apply for the purposes of this subsection.]

(4) No such certificate shall be issued without the authority of the inspector or where the company, or a person connected with the company, has given notice to the inspector under section 310(2).

(5) Any statement under subsection (3) above shall contain such information as the Board may reasonably require, shall be in such form as the Board may direct and shall contain a declaration that it is correct to the best of the company’s knowledge and belief.

(6) Where a company has issued a certificate for the purposes of subsection (2) above, or furnished a statement under subsection (3) above and—

(a) the certificate or statement is made fraudulently or negligently; or

(b) the certificate was issued in contravention of subsection (4) above;

the company shall be liable to a penalty not exceeding [F4 £3,000].

(7) For the purposes of regulations made under section 203 no regard shall be had to the relief unless a claim for it has been duly made and admitted.

(8) No application shall be made under section 55(3) or (4) of the Management Act (application for postponement of payment of tax pending appeal) on the ground that the applicant is [F5 eligible for] the relief unless a claim for the relief has been duly made by him.

(9) For the purposes of section 86 of the Management Act (interest on overdue tax), tax charged by an assessment—

(a) shall be regarded as due and payable notwithstanding that relief from the tax (whether by discharge or repayment) is subsequently given on a claim for the relief; but

(b) shall, unless paid earlier or due and payable later, be regarded as paid on the date of the making of the claim on which the relief is given;

and section 91 of that Act (effect on interest of reliefs) shall not apply in consequence of any discharge or repayment for giving effect to the relief.

(10) M2 For the purposes of the provisions of the Management Act relating to appeals against decisions on claims, the refusal of the inspector to authorise the issue of a certificate under subsection (2) above shall be taken to be a decision refusing a claim made by the company.

F6 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

[F7 (11) Section 312(1A)(b) applies to determine the relevant period for the purposes of this section.]

Textual Amendments

F1 Words in s. 306(1)(a) substituted (with effect as mentioned in s. 137(1)(2) of the amending Act) by Finance Act 1994 (c. 9), Sch. 15 para. 21(a)(i)

F2 S. 306(1)(b) substituted (with effect as mentioned in s. 137(1)(2) of the amending Act) by Finance Act 1994 (c. 9), Sch. 15 para. 21(a)(ii)

F3 S. 306(3A) inserted (with effect as mentioned in s. 137(1)(2) of the amending Act) by Finance Act 1994 (c. 9), Sch. 15 para. 21(b)

F4 1989 s.170(3)in relation to things done or omitted on or after 27July 1989.Previously

“£250 or, in the case of fraud, £500.”.

F5 Words in s. 306(8) substituted (with effect as mentioned in s. 137(1)(2) of the amending Act) by Finance Act 1994 (c. 9), Sch. 15 para. 21(c)

F6 Words in s. 306(10) repealed (with effect as mentioned in s. 137(1)(2), Sch. 26 Pt. 5(17) Note of the repealing Act) by Finance Act 1994 (c. 9), Sch. 15 para. 21(d), Sch. 26 Pt. 5(17)

F7 S. 306(11) inserted (with effect as mentioned in s. 137(1)(2) of the amending Act) by Finance Act 1994 (c. 9), Sch. 15 para. 21(e)

Modifications etc. (not altering text)

C1 S. 306(1)(b) modified (1991-92) by The Lloyd's Underwriters (Tax) (1991-92) Regulations 1994 (S.I. 1994/728), regs. 1, 9, Sch. 2

C2 S. 306(1)(b) modified (1992-93, 1993-94 and 1994-5) by The Lloyd's Underwriters (Tax) (1992-93 to 1996-97) Regulations 1995 (S.I. 1995/352), regs. 1, 14, 15, Sch.

C3 See 1988(F) s.50and Sch.4 para.10for changes applicable in respect of shares issued on or after 29July 1988and before the end of 1993in respect of private rented housing.

Marginal Citations

M1 Source-1983 Sch.5 13(1)-(9); 1981 s.61(6)

M2 Source-1983 Sch.5 13(10); 1986 Sch.9 1(2), 13