Section 257RA — Finance Act 2014: Cases where maximum relief not obtained

Cases where maximum relief not obtained 257RA 1 Subsection (2) applies if the investor's liability to income tax for any tax year is reduced under this Part in respect of the investment and—

a the amount of the reduction (“D”), is less than b the amount given by— A × R where— A is the amount on which the investor claims SI relief in respect of the investment, and R is the SI rate for that tax year.

2 Section 257R(3) and (4) have effect as if the amount or value referred to as C were reduced by multiplying it by the fraction— D A × R 3 If section 257JA(1) and (2) apply in the case of the investment as if part of it had been made in a previous tax year, subsections (1) and (2) of this section have effect as if that part and the remainder had been invested by separate investments (and that part had been invested by an investment made on a day in the previous tax year).

4 If the amount of SI relief attributable to the investment or any part of it has been reduced before 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 that it would have been without that reduction.

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