Section 257QO — Finance Act 2014: Maximum relief not obtained for share issue

Maximum relief not obtained for share issue 257QO 1 This section applies if section 257QJ(2) applies to SI relief attributable to shares held by the investor and—

a the amount of the reduction (“D”) in the investor's liability to income tax for any tax year in respect of the shares, is less than b the amount given by— I × R where— I is the amount on which the investor claims SI relief in respect of the investment, and R is the SI rate for the tax year for which the SI relief was given.

2 Section 257QJ(3) has effect as if the amount referred to as A were reduced by multiplying it by the fraction— D I × R 3 If the amount of SI relief attributable to any of the shares has been reduced before the SI relief was obtained, the amount referred to in subsections (1) and (2) as D is to be treated for the purposes of those subsections as the amount it would have been without that reduction.

4 Subsection (3) does not apply to a reduction of SI relief by virtue of section 257N(5) (attribution of SI relief where there is a corresponding issue of bonus shares).