Income Tax Act 2007 section 257PB

Compliance statements

Section 257PB sets out the requirements for compliance statements that social enterprises must provide to HMRC in order for investors to claim Social Investment (SI) tax relief.

• A compliance statement is a declaration by the social enterprise confirming that all conditions for SI relief have been and continue to be met since the investment was made
• HMRC prescribes the form and content of the statement, which must include information about persons requesting compliance certificates and a declaration of accuracy
• The statement cannot be submitted before the social enterprise has been trading for at least four months, and must be provided no later than two years after the end of the tax year in which the investment was made (or two years after the trading requirement is first met, if later)
• Accredited social impact contractors are exempt from the four-month trading requirement before submitting a compliance statement