Income Tax Act 2007 section 257SD

Date from which interest is chargeable

Section 257SD establishes the date from which interest on overdue tax begins to accrue when Social Investment (SI) tax relief is withdrawn or reduced.

• When SI relief is withdrawn or reduced, any resulting tax underpayment carries interest from a specified date
• The interest start date is 31 January following the end of the tax year for which the assessment withdrawing or reducing relief is made
• This date will always fall before the date on which the self-assessment return is amended or the assessment withdrawing relief is actually issued
• The rule applies where relief is withdrawn or reduced due to breaches of investor eligibility, social enterprise eligibility, value received, share capital repayment, disposal of the investment, or put option provisions