Income Tax Act 2007 section 257MNC

Maximum amount for cases outside section 257MNA

Section 257MNC sets out the investment limits that apply to social enterprises receiving social investment tax relief where the higher limits available under section 257MNA (for investments in the first seven years) do not apply.

• This section applies where the investment falls outside the initial period covered by section 257MNA, or where the conditions of that section are not met — typically meaning the social enterprise is older or does not qualify for the higher threshold.
• Total relevant investments received by the social enterprise up to and including the date of the new investment must not exceed £1.5 million, and the individual investment must also fall within a separate cap calculated by a formula based on the EU de minimis aid ceiling of €200,000.
• The formula reduces the €200,000 ceiling by accounting for other de minimis state aid received and for the tax relief rates (capital gains tax and social investment tax relief rates), and then subtracts any relevant investments already made in the preceding three-year aid period.
• Any amounts in sterling or other non-euro currencies must be converted to euros at an appropriate spot exchange rate on the date the investment is made or the aid is paid, and the definition of "relevant investment" draws on section 173A(3), extended to cover social enterprises as well as companies.