Income Tax Act 2007 section 236

Appeals against section 234(3)(b) notices

Section 236 allows an issuing company to appeal against an HMRC notice that EIS relief was not due, and explains when a previous appeal determination on the same issue is binding.

• When HMRC issues a notice under section 234(3)(b) stating that EIS relief was not due, this is treated for appeal purposes as a decision disallowing a claim made by the issuing company.
• The issuing company can therefore use the standard appeal procedures under the Taxes Management Act 1970 to challenge the notice before an independent tribunal.
• If the same issue — whether shares were or remain eligible shares — has already been decided on appeal under the capital gains tax reinvestment relief rules (Schedule 5B to the Taxation of Chargeable Gains Act 1992), that earlier decision is conclusive and cannot be re-argued.
• This prevents conflicting outcomes by ensuring that a determination already reached on the eligibility of shares in one appeal binds any subsequent appeal on the same point.