Taxes Consolidation Act 1997 section 508W

Assessments for withdrawing relief under Chapter 5

Section 508W provides for the withdrawal of relief claimed under the Start-Up Relief for Entrepreneurs (SURE) scheme where that relief is subsequently found not to have been due or is no longer due because of certain events.

• Relief must be withdrawn if it was never properly due, for example because the company was not a qualifying company, the investment was not a relevant investment, the individual was not a specified person, or the relief did not comply with section 507.
• Relief must also be withdrawn where it is no longer due, for example because arrangements exist to reduce investment risk, the company takes over the individual's previous business, a reduction applies under Chapter 10, the investment was not made for bona fide commercial purposes, or the individual fails or ceases to meet employment or eligibility conditions.
• Withdrawal is effected by raising an income tax assessment under Schedule D Case IV for the year of assessment in which the relief was originally given, not the year the triggering event occurred.
• Interest on overdue tax runs from a date that depends on the reason for withdrawal, broadly from the date the relief was claimed or the date of the event causing the withdrawal, with a special rule for PAYE taxpayers where relief is withdrawn for tax avoidance.