F1PART 5BTax relief for social investments
CHAPTER 7Withdrawal or reduction of SI relief
Disposals
257RDisposal of whole or part of the investment
1
This section applies if—
a
the investor disposes of the whole or part of the investment,
b
the disposal takes place before the shorter applicable period ends,
c
SI relief is attributable to the shares, or qualifying debt investments, disposed of,
d
the disposal is not to an individual who—
i
is the spouse, or civil partner, of the investor, and
ii
is living together with the investor at the time of the disposal, and
e
the disposal does not occur as a result of the investor's death.
2
If the disposal is not made by way of a bargain at arm's length, the SI relief attributable to those shares, or qualifying debt investments, must be withdrawn.
3
If the disposal is made by way of a bargain at arm's length, the SI relief attributable to those shares or qualifying debt investments must—
a
if it is greater than the amount given by the formula set out in subsection (4), be reduced by that amount, and
b
in any other case, be withdrawn.
4
The formula is—
where—
C is the amount or value of the consideration received by the investor for the shares or qualifying debt investments, and
R is the SI rate for the tax year for which the SI relief was given.
Pt. 5B inserted (17.7.2014) by Finance Act 2014 (c. 26), Sch. 11 para. 1