Income Tax Act 2007 section 257PC

Compliance certificates

Section 257PC sets out the requirements for a social enterprise to issue a compliance certificate to an investor seeking Social Investment (SI) tax relief, including the need for HMRC authorisation and the procedures around that authorisation.

• A compliance certificate is issued by the social enterprise confirming that the conditions for SI relief are currently being met in relation to the investment, in a form specified by HMRC.
• Before issuing the certificate, the social enterprise must provide HMRC with a compliance statement and must obtain HMRC's authority to issue it.
• If the social enterprise or a connected person has notified HMRC of a relevant event under section 257SF, a new or renewed HMRC authority is required before any certificate can be issued.
• A refusal by HMRC to authorise the certificate is treated as a disallowed claim for the purposes of the appeal provisions in the Taxes Management Act 1970.