What power does section 144 of the Income Tax Act 2007 grant the Treasury?

Section 144 grants the Treasury the power to amend, by statutory order, any of the qualifying company requirements set out in sections 137 to 143 of the Income Tax Act 2007. These requirements determine whether a company qualifies for share loss relief purposes. The Treasury can make whatever amendments it considers appropriate without new primary legislation.

Why does the Treasury need this power to amend the share loss relief qualifying conditions?

The share loss relief qualifying company conditions in sections 137 to 143 largely mirror the Enterprise Investment Scheme conditions in Part 5 of the Act. Section 200 gives the Treasury equivalent power to amend EIS conditions. Section 144 ensures that when EIS rules are updated, matching changes can be promptly reflected in share loss relief rules.

What requirements can the Treasury amend under section 144 of the Income Tax Act 2007?

The Treasury can amend any requirements in sections 137 to 143, which include the trading requirement, the requirement to carry on business for a reasonable period, the unquoted status requirement, and other qualifying criteria a company must satisfy for a shareholder to claim loss relief on a disposal of shares.

What is the legislative origin of section 144 of the Income Tax Act 2007?

Section 144 derives from sections 298(4) and 576(4A) of the Income and Corporation Taxes Act 1988. Under the earlier legislation, amendments to provisions applying for both EIS and loss relief purposes automatically took effect for both sets of rules. Section 144 preserves that approach in a clearer, more transparent statutory form.

Income Tax Act 2007 section 144

Power to amend requirements by Treasury order

Section 144 grants the Treasury the power to amend, by order, the qualifying company requirements set out in sections 137 to 143 for the purposes of share loss relief.

The Treasury may amend sections 137 to 143 by order as it considers appropriate
These sections cover the qualifying conditions a company must meet for share loss relief, including the trading requirement, the unquoted status requirement, and other criteria
This power mirrors the Treasury's equivalent power under section 200 to amend the corresponding requirements for Enterprise Investment Scheme relief in Part 5 of the Act
The provision ensures that when the Treasury updates the EIS qualifying company rules, it can make matching changes to the share loss relief rules without requiring primary legislation

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