Income Tax Act 2007 section 257GH

Power to require information in other cases

Section 257GH gives HMRC the power to demand information from specified persons where there are concerns that SEIS relief may have been claimed improperly due to tax avoidance schemes or disqualifying arrangements.

• Where HMRC suspects SEIS relief may not be due because of tax avoidance schemes or disqualifying arrangements, an officer may issue a formal notice requiring relevant persons to provide a written declaration and supporting information
• The person required to respond depends on the nature of the concern and may include the claimant, the company, persons controlling or connected with the company, or suspected parties to arrangements
• Any notice issued must allow at least 60 days for the person to respond, and references to the claimant extend to any spouse or civil partner to whom shares may have been transferred
• Where SEIS relief has been obtained or claimed, HMRC can require anyone who received payments or assets from the company, or who holds or held shares, to disclose whether they acted on behalf of another person and provide that person's name and address