SCHEDULES
F7SCHEDULE 5B Enterprise investment scheme: re-investment
F8Failure of conditions of application
Sch. 5B para. 1A and cross-heading inserted (with effect in accordance with s. 74(3) of the amending Act) by Finance Act 1998 (c. 36), Sch. 13 para. 28
1A
1
If the condition in sub-paragraph (2)(b) F10or (2)(da) of paragraph 1 above is not satisfied in consequence of an event occurring after the issue of eligible shares, the shares F5mentioned in sub-paragraph (2)(a) of that paragraph shall be treated for the purposes of this Schedule as ceasing to be eligible shares on the date of the event.
2
If the condition in sub-paragraph (2)(e) of that paragraph is not satisfied in consequence of an event occurring after the issue of eligible shares, the shares F9mentioned in sub-paragraph (2)(a) of that paragraph shall be treated for the purposes of this Schedule as ceasing to be eligible shares on the date of the event.
3
If the condition in sub-paragraph (2)(f) of that paragraph is not satisfied in relation to F12the shares mentioned in sub-paragraph (2)(a) of that paragraph, the shares shall be treated for the purposes of this Schedule as never having been eligible shares.
4
If the condition in sub-paragraph (2)(g) F11... of that paragraph is not satisfied in relation to F4the issue of eligible shares, the shares mentioned in sub-paragraph (2)(a) of that paragraph shall be treated for the purposes of this Schedule—
a
if the claim under this Schedule is made after the time mentioned in F6section 175(3) of ITA 2007, as never having been eligible shares; and
b
if that claim is made before that time, as ceasing to be eligible shares at that time.
F134A
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5
None of the preceding sub-paragraphs applies unless—
a
the company has given notice under paragraph 16(2) or (4) belowF2, section 310(2) of the Taxes Act or section 241(3) of ITA 2007; or
b
an inspector has given notice to the company stating that, by reason of the matter mentioned in that sub-paragraph, the shares F3mentioned in paragraph 1(2)(a) above should, in his opinion, be treated for the purposes of this Schedule as never having been or, as the case may be, as ceasing to be eligible shares.
6
The giving of notice by an inspector under sub-paragraph (5) above shall be taken, for the purposes of the provisions of the Management Act relating to appeals against decisions on claims, to be a decision refusing a claim made by the company.
7
Where any issue has been determined on an appeal brought by virtue of section 307(1B) of the Taxes Act F1or section 236(1) of ITA 2007 (appeal against notice that relief was not due), the determination shall be conclusive for the purposes of any appeal brought by virtue of sub-paragraph (6) above on which that issue arises.
Sch. 5B inserted (with effect in accordance with Sch. 13 para. 4(4) of the amending Act) by Finance Act 1995 (c. 4), Sch. 13 para. 4(3)