Section 257QC — Finance Act 2014: Value received where part of investment treated as made in previous tax year

Value received where part of investment treated as made in previous tax year 257QC 1 Subsection (2) applies if—

a section 257Q(1) applies to a receipt, and b section 257JA(1) and (2) apply as if part of the amount invested had been invested in a previous tax year.

2 The calculation under section 257Q(2) in relation to that receipt is to be made as follows— Step 1 Apportion the amount referred to as “ V ” between the tax year in which the investment was made and the preceding tax year by multiplying that amount by— A B where— A is the part of the amount invested on which the investor obtains SI relief for the tax year in question, and B is the sum of— that part, and the part of the amount invested on which the investor obtains SI relief for the other tax year. Step 2 In relation to each of the amounts (“ V1 ” and “ V2 ”) so apportioned to the two tax years, calculate the amounts (“ X1 ” and “ X2 ”) that would be given by the formula if separate investments had been made in those tax years. In calculating amounts X1 and X2, apply section 257QD if appropriate but do not apply section 257QB. Step 3 Add amounts X1 and X2 together. The result is the required amount.