Income Tax Act 2007 section 257SE

Information to be provided by the investor

Section 257SE requires investors who have received Social Investment (SI) tax relief to notify HMRC within 60 days when certain events occur that may lead to the withdrawal or reduction of that relief.

• Investors must report events that trigger withdrawal or reduction of SI relief, including breaches of linked loan rules, ceasing to be a qualifying investor (e.g. becoming an employee, partner or paid director, or holding more than a 30% interest), or entering into prohibited reciprocal arrangements
• Notification is also required where the investor or an associate receives value from the social enterprise, or where shares or debt investments are disposed of, or where put or call options are involved
• The investor must notify an officer of HMRC in writing within 60 days of becoming aware of the triggering event, providing full particulars
• Where the event involves receipt of value, the notice must also include details of any replacement value received or expected to be received, if the investor is aware of it