Income Tax Act 2007 section 257QA

Value received: insignificant receipts

Section 257QA sets out when small amounts of value received by an investor from a social enterprise can be disregarded for the purposes of withdrawing or reducing social investment (SI) relief.

• A receipt is "insignificant" if it is £1,000 or less, or if it exceeds £1,000 but is trivial relative to the amount the investor originally invested.
• Insignificant receipts are generally exempt from the rules that withdraw or reduce SI relief — unless pre-existing arrangements were in place for the investor to receive value from the social enterprise.
• Once any receipt within the longer applicable period triggers the withdrawal or reduction rules, all subsequent receipts in that period also become subject to those rules, though earlier insignificant receipts remain exempt.
• The amount of the first receipt that triggers the rules is treated as increased by the total of any earlier insignificant receipts, effectively aggregating those smaller amounts.