Income Tax Act 2007 section 809VB

Failure to invest within 45 days

Section 809VB deals with situations where money or other property is brought to the UK with the intention of making a qualifying investment, but some or all of it is not actually invested within the required 45-day window.

• Where money brought to the UK is not used to make a qualifying investment within 45 days, the business investment relief under section 809VA does not apply to the corresponding portion of income or gains
• However, the income or gains can still be treated as not remitted to the UK if the uninvested money or property is taken back offshore within the same 45-day period
• If only part of the uninvested money or property is taken offshore within the 45-day period, the portion of income or gains treated as not remitted is determined on a just and reasonable basis
• Even where money or property is taken offshore within the 45-day period, any subsequent action involving that money or property (or anything derived from it) can count as a remittance at the time it takes place