Income Tax Act 2007 section 809VJ

The grace period allowed for the appropriate mitigation steps

Section 809VJ sets out the time limits — known as grace periods — within which a taxpayer must complete the appropriate mitigation steps following a potentially chargeable event in relation to a business investment that benefits from the remittance basis rules.

• A 90-day grace period applies for disposing of the investment holding, running from the date value is received (for extraction of value breaches) or from when a relevant person became or should have become aware of the event (in all other cases)
• A 45-day grace period applies for taking disposal proceeds offshore or reinvesting them, running from the date the proceeds first become available for use by or for the benefit of the taxpayer or any other relevant person
• Where the potentially chargeable event is a breach of the 5-year start-up rule under section 809VH(5)(b), both the disposal and proceeds steps are subject to a single extended grace period of 2 years from when a relevant person became or should have become aware of the event
• HMRC officers may extend any grace period in exceptional circumstances or in circumstances specified by regulations, including extensions that are initially indefinite but become definite once specified conditions are met