Income Tax Act 2007 section 312A

Power to require information relating to disqualifying arrangements

Section 312A gives HMRC officers the power to demand information from relevant parties where they suspect that shares have been issued to a venture capital trust under disqualifying arrangements.

• Where an HMRC officer suspects shares were issued to an investing company under disqualifying arrangements, they may issue a formal notice requiring information from any person concerned.
• The notice can require a written declaration confirming whether disqualifying arrangements exist or have existed, plus any other information reasonably needed to assess the position.
• Any notice issued must allow at least 60 days for the recipient to respond.
• A "person concerned" includes the issuing company, the investing company, anyone connected with either company, and anyone the officer believes is or was a party to the arrangements.