F1SCHEDULE 5B Enterprise investment scheme: re-investment
F2Information
16
(1)
Where, in relation to F3any of the relevant shares held by an individual—
(a)
a chargeable event falling within paragraph 3(1)(a) or (b) above occurs at any time F4before the termination date relating to those shares,
(b)
a chargeable event falling within paragraph 3(1)(c) or (d) above occurs, or
(c)
a chargeable event falling within paragraph 3(1)(e) above occurs by virtue of paragraph 12(2)(b), 13(1)(b) or 15(1)(b) above,
the individual shall within 60 days of his coming to know of the event give a notice to the inspector containing particulars of the circumstances giving rise to the event.
(2)
Where, in relation to F3any of the relevant shares in a company, a chargeable event falling within paragraph 3(1)(e) above occurs by virtue of paragraph 1A(1) or (2), 13(1)(b) or 14(2)(b) above—
(a)
the company, and
(b)
any person connected with the company who has knowledge of that matter,
shall within 60 days of the event or, in the case of a person within paragraph (b) above, of his coming to know of it, give a notice to the inspector containing particulars of the circumstances giving rise to the event.
F5(2A)
In determining, for the purposes of sub-paragraph (1) or (2) above, whether a chargeable event falling within paragraph 3(1)(e) above has occurred by virtue of paragraph 13(1)(b) above, the effect of paragraph 13B above shall be disregarded.
(3)
A chargeable event falling within paragraph 3(1)(e) above which, but for paragraph 1A(5) above, would occur at any time by virtue of paragraph 1A(1) or (2) above shall be treated for the purposes of sub-paragraph (2) above as occurring at that time.
F6(3A)
Where—
(a)
a person is required to give a notice under sub-paragraph (1) or (2) above in respect of a chargeable event which occurs by virtue of paragraph 13(1)(b) above or would occur by virtue of that paragraph but for the operation of paragraph 13B above, and
(b)
that person has knowledge of the replacement value received (or expected to be received) from the original recipient by the original supplier by reason of a qualifying receipt,
the notice shall include particulars of that receipt of the replacement value (or expected receipt).
In this sub-paragraph “the replacement value”, “the original recipient”, “the original supplier” and “qualifying receipt” shall be construed in accordance with paragraph 13B above.
(4)
Where a company has issued a certificate under section 306(2) of the Taxes Act F7or section 203(1) of ITA 2007 (as applied by paragraph 6 above) in respect of any eligible shares in the company, and the condition in paragraph 1(2)(g) above is not satisfied in relation to the shares—
(a)
the company, and
(b)
any person connected with the company who has knowledge of that matter,
shall within 60 days of the time mentioned in section 289(3) of the Taxes Act F8or section 175(3) of ITA 2007 or, in the case of a person within paragraph (b) above, of his coming to know that the condition is not satisfied, give notice to the inspector setting out the particulars of the case.
F9(4A)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(5)
F10If the inspector has reason to believe—
(a)
that a person has not given a notice which he is required to give—
(i)
under sub-paragraph (1) or (2) above in respect of any chargeable event, or
(ii)
under sub-paragraph (4) above in respect of any particular case, or
(b)
that a person has given or received value (within the meaning of paragraph 13(2) or (5) above) which, but for the fact that the amount given or received was an amount of insignificant value (within the meaning of paragraph 13A(3) above), would have triggered a requirement to give a notice under sub-paragraph (1) or (2) above, or
(c)
that a person has made or received any repayment (within the meaning of paragraph 14AA(2) above) which, but for the fact that it falls to be disregarded for the purposes of paragraph 14 above by virtue of paragraph 14AA(1) above, would have triggered a requirement to give a notice under sub-paragraph (2) above,
the inspector may by notice require that person to furnish him within such time (not being less than 60 days) as may be specified in the notice with such information relating to the event or case as the inspector may reasonably require for the purposes of this Schedule.
(6)
Where a claim is made under this Schedule in respect of shares in a company and the inspector has reason to believe that it may not be well founded by reason of any such arrangements as are mentioned in paragraphs 1(2)(d)F11, 11(1) or 11A above, or section F12289(1D) or (9)(e), 289A(8)(b) or (8A), 293(4B), (6) or (8) or 308(2)(e), (3), (3A) or (4) of the Taxes Act F13or section 176(4)(b) or (5)(b), 182(2) or (4), 183(6), 185(1), 190(1)(e) or 191(2)(c), (3), (4) or (5) of ITA 2007, he may by notice require any person concerned to furnish him within such time (not being less than 60 days) as may be specified in the notice with—
(a)
a declaration in writing stating whether or not, according to the information which that person has or can reasonably obtain, any such arrangements exist or have existed;
(b)
such other information as the inspector may reasonably require for the purposes of the provision in question and as that person has or can reasonably obtain.
(7)
For the purposes of sub-paragraph (6) above, the persons who are persons concerned are—
(a)
F16(aa)
in relation to section 289(1D), 289A(8)(b) or (8A) or 308(3), (3A) or (4) of the Taxes Act F17or section 176(4)(b) or (5)(b), 183(6) or 191(3), (4) or (5) of ITA 2007, the claimant, the company, any other company in question and any person controlling the company or any other company in question;
(b)
in relation to paragraph 11(1) above, the claimant, the company and any person connected with the company; F18...
F19(ba)
in relation to paragraph 11A, the claimant, the company, any person controlling the company and any person whom an officer of Revenue and Customs has reason to believe may be a party to the arrangements in question; and
(c)
F25(7A)
The references in sub-paragraphs (6) and (7) above to subsections (3), (3A) and (4) of section 308 of the Taxes Act F26and subsections (3), (4) and (5) of section 191 of ITA 2007 are to be read as including those provisions as applied by section 289(10) and (11) of F27the Taxes Act or section 190(2) of ITA 2007.
(8)
Where deferral relief is attributable to shares in a company—
(a)
any person who receives from the company any payment or asset which may constitute value received (by him or another) for the purposes of paragraph 13 above, and
(b)
any person on whose behalf such a payment or asset is received,
shall, if so required by the inspector, state whether the payment or asset received by him or on his behalf is received on behalf of any person other than himself and, if so, the name and address of that person.
(9)
Where a claim has been made under this Schedule in relation to shares in a company, any person who holds or has held shares in the company and any person on whose behalf any such shares are or were held shall, if so required by the inspector, state—
(a)
whether the shares which are or were held by him or on his behalf are or were held on behalf of any person other than himself; and
(b)
if so, the name and address of that person.
(10)
No obligation as to secrecy imposed by statute or otherwise shall preclude the inspector from disclosing to a company that relief has been given or claimed in respect of a particular number or proportion of its shares.