Taxes Consolidation Act 1997 section 508U

Assessments for withdrawing relief claimed under Chapter 4 - company

Section 508U provides for the withdrawal of EIIS relief by means of corporation tax assessments on the qualifying company where statements of qualification are incorrect or where relief is no longer due.

• Where a statement of qualification is incorrect, excess relief is withdrawn by a Case IV corporation tax assessment on the qualifying company equal to 1.2 times the relevant amount (shares issued on or before 31 December 2022) or 1.6 times (shares issued on or after 1 January 2023).
• Where the company ceases to be a qualifying company, the investment ceases to qualify, or the relief is reduced under section 508R, relief is similarly withdrawn by a Case IV assessment using the same multipliers depending on the date of share issue.
• Where a second stage relief statement of qualification is incorrect, excess relief is withdrawn by a Case IV assessment equal to 0.4 times the relevant amount; and where additional relief is withdrawn under section 502(5), the assessment is for the tax year following the year in which the subsequent period ends.
• Interest on overdue tax runs from the date of share issue (incorrect statement), the date of the disqualifying event (cessation of qualifying status), or the tax year following the subsequent period (second stage and section 502(5) withdrawals); no loss, expense or allowance may be set off against the assessment, and the amount is excluded from the close company surcharge.