Income Tax Act 2007 section 257GB

Time limits for assessments

Section 257GB sets out the time limits within which HMRC can make assessments to withdraw or reduce Seed Enterprise Investment Scheme (SEIS) relief.

• HMRC has a six-year window to assess and withdraw or reduce SEIS relief on relevant shares, running from the end of the relevant tax year
• The relevant tax year is whichever is the later of the tax year in which period B ends, or the tax year in which the event triggering the withdrawal or reduction occurs
• Within the same six-year window, HMRC can also issue a notice under section 257FR(3) where relief is subsequently found not to have been due
• The six-year time limit does not override the extended time limits under section 36(1A) of the Taxes Management Act 1970, which apply where a loss of tax has been brought about deliberately