Income Tax Act 2007 section 257LA

Condition that the amount invested must have been paid over

Section 257LA requires that the full investment amount must actually be paid over in cash before income tax relief can be claimed under the Social Investment Tax Relief scheme.

• Where the investment is in shares, those shares must be subscribed for wholly in cash and must be fully paid up at the time they are issued.
• Where the investment is in qualifying debt instruments, the full amount of each cash advance must have been paid over by the time the investment is treated as made.
• Shares are not treated as fully paid up, and debt investments are not treated as fully advanced, if there is any undertaking to pay cash to anyone at a future date in respect of acquiring those shares or investments.
• The term "debenture" is defined broadly to include any instrument that creates or acknowledges indebtedness.