Taxes Consolidation Act 1997 section 508V

Assessments for withdrawing relief claimed under Chapter 4 - investor

Section 508V provides for the withdrawal of Employment Investment Incentive relief where conditions are not met after the relief has been given, and sets out how interest on overdue tax is calculated in each case.

• Relief is withdrawn by assessment under Schedule D Case IV for the year in which relief was originally given, not the year in which the triggering event occurred.
• Withdrawal applies where protective arrangements exist, the company takes over a connected business, value is received by a non-qualifying person, the investment lacks bona fide commercial purpose, or the investor ceases to qualify.
• Interest on overdue tax runs from a date specific to each ground of withdrawal, ranging from the date relief was claimed to the date of the triggering event.
• Where jointly assessed spouses or civil partners separate, the assessment is made on the person who disposed of the shares, based on the full tax reduction regardless of how it was allocated between them.