Section 255D — Finance Act 2014: Application of section 255B(2) where SI relief has been reduced

Application of section 255B(2) where SI relief has been reduced 255D 1 Subsection (2) applies if before a disposal of an asset—

a value is received in circumstances where SI relief attributable to the asset is reduced by an amount under section 257Q(1)(a) of ITA 2007, or b there is a repayment, redemption, repurchase or payment in circumstances where SI relief attributable to the asset is reduced by an amount under section 257QJ(2)(a) of ITA 2007, or c paragraphs (a) and (b) both apply.

2 If section 255B(2) applies on the disposal but section 255C does not, section 255B(2) applies only to so much of the gain as remains after deducting so much of it as is found by multiplying it by the fraction— A B where— A is equal to the amount by which the SI relief given in respect of the asset is reduced as mentioned in subsection (1) above, and B is equal to the amount of the SI relief given in respect of the asset.

3 If sections 255B(2) and 255C apply on the disposal, section 255B(2) applies only to so much of the gain as is found by—

a taking the part of the gain found under section 255C, and b deducting from that part so much of it as is found by multiplying it by the fraction mentioned in subsection (2).

4 If the SI relief given in respect of the asset is reduced as mentioned in subsection (1) by more than one amount, the amount referred to as A in subsection (2) is to be taken to be equal to the aggregate of those amounts.

5 The amount referred to in subsection (2) as B is to be found without regard to any reduction mentioned in subsection (1).