Part 5Enterprise investment scheme

Chapter 7Withdrawal or reduction of EIS relief: procedure

Information

243Power to require information in other cases

(1)

Subsection (2) applies if EIS relief is claimed in respect of shares in a company, and an officer of Revenue and Customs has reason to believe that it may not be due because of any such arrangement or scheme as is mentioned in—

(a)

section 165 or 182(2) or (4) (no tax avoidance),

(b)

section 171 (persons subscribing for shares under certain arrangements),

(c)

section 176(4) or (5), 183(6) or 191(3), (4) or (5) (winding up, administration etc),

(d)

section 177(1) (no pre-arranged exits), or

(e)

section 185(1) or (2), 190(1) or 191(2) (conditions ceasing to be met).

The reference in paragraph (c) to subsections (3), (4) and (5) of section 191 is to be read as including those subsections as applied by section 190(2).

(2)

The officer may by notice require any person concerned to supply the officer within such time 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 arrangement or scheme exists or has existed, and

(b)

such other information as the officer may reasonably require for the purposes of the provision in question and as that person has or can reasonably obtain.

(3)

The period specified in a notice under subsection (2) must be at least 60 days.

(4)

For the purposes of subsection (2), in a case falling within a provision listed in column 1 of the following table, the person concerned is given by the corresponding entry in column 2 of the table.

Provision

The person concerned

Subsection (1)(a)

The claimant, the company and any person controlling the company

Subsection (1)(b)

The claimant

Subsection (1)(c)

The claimant, the company, any other company in question and any person controlling the company or any other company in question

Subsection (1)(d)

The claimant, the company and any person connected with the company

Subsection (1)(e)

The company and any person controlling the company

References in this subsection to the claimant include references to any person to whom the claimant appears to have made such a transfer as is mentioned in section 245 (spouses or civil partners) of any of the shares in question.

(5)

If EIS relief has been obtained in respect of shares in a company—

(a)

any person who receives from the company any payment or asset which may constitute value received (by the person or another) for the purposes of section 213, and

(b)

any person on whose behalf such a payment or asset is received,

must, if so required by an officer of Revenue and Customs, state whether the payment or asset so received is received on behalf of any other person and, if so, the name and address of that other person.

(6)

If EIS relief has been claimed in respect of shares in a company—

(a)

any person who holds or has held shares in the company, and

(b)

any person on whose behalf any such shares are or were held,

must, if so required by an officer of Revenue and Customs, state whether the shares so held are or were held on behalf of any other person and, if so, the name and address of that other person.