Income Tax Act 2007 section 257SF

Information to be provided by the social enterprise etc

Section 257SF requires a social enterprise to notify HMRC when certain events occur that could result in Social Investment (SI) tax relief being withdrawn or reduced, and sets out who must report, what must be reported, and within what timeframe.

• Once a social enterprise has provided HMRC with a compliance statement for an investment, it must notify HMRC if an event occurs that causes any of the qualifying conditions to no longer be met, or that triggers withdrawal or reduction of SI relief
• Both the social enterprise itself and any connected person who knows about the event must give notice to HMRC containing details of the event, generally within 60 days of it occurring or within 60 days of becoming aware of it
• If the notice relates to a receipt of value by the investor, and the person giving notice knows that replacement value has been or is expected to be received, the notice must also include details of that replacement value
• If the triggering event is that the enterprise has ceased to qualify as a social enterprise, the reporting obligation still applies to the body concerned (even though it is no longer a social enterprise) or to any successor body it has been converted into