Income Tax Act 2007 section 269

Loss of relief which is subsequently found not to have been due

Section 269 deals with the withdrawal of VCT (Venture Capital Trust) income tax relief where it is later discovered that the relief should not have been given in the first place.

• If VCT income tax relief has been claimed and granted, but it later emerges that the relief was not properly due, it must be withdrawn.
• This applies regardless of the reason why the relief turns out to have been incorrectly given.
• The withdrawal claws back the full amount of relief that should not have been obtained.
• This provision ensures that only taxpayers who genuinely qualify for VCT relief retain the benefit of it.