Office of Public Sector Information
PART VII continued CHAPTER III continued
(3) For the purposes of subsection (2)(b) above—
(a) a trade of wholesale distribution is one in which the goods are offered for sale and sold to persons for resale by them, or for processing and resale by them, to members of the general public for their use or consumption;
(b) a trade of retail distribution is one in which the goods are offered for sale and sold to members of the general public for their use or consumption;
(c) a trade is not an ordinary trade of wholesale or retail distribution if—
(i) it consists to a substantial extent of dealing in goods of a kind which are collected or held as an investment or of that activity and any other activity of a kind falling within subsection (2) above, taken together; and
(ii) a substantial proportion of those goods are held by the company for a period which is significantly longer than the period for which a vendor would reasonably be expected to hold them while endeavouring to dispose of them at their market value; and
(d) in determining whether a trade is an ordinary trade of wholesale or retail distribution regard shall be had to the extent to which it has the following features, that is to say—
(i) the goods are bought by the trader in quantities larger than those in which he sells them;
(ii) the goods are bought and sold by the trader in different markets;
(iii) the trader employs staff and incurs expenses in the trade in addition to the cost of the goods and, in the case of a trade carried on by a company, in addition to any remuneration paid to any person connected with it;
(iv) there are purchases or sales from or to persons who are connected with the trader;
(v) purchases are matched with forward sales or vice versa;
(vi) the goods are held by the trader for longer than is normal for goods of the kind in question;
(vii) the trade is carried on otherwise than at a place or places commonly used for wholesale or retail trade;
(viii) the trader does not take physical possession of the goods;
those features in sub-paragraphs (i) to (iii) being regarded as indications that the trade is such an ordinary trade and those in sub-paragraphs (iv) to (viii) being regarded as indications of the contrary.
(4) A trade shall not be treated as failing to comply with this section by reason only of its consisting to a substantial extent of receiving royalties or licence fees if—
(a) the company carrying on the trade is engaged throughout the relevant period in—
(i) the production of films; or
(ii) the production of films and the distribution of films produced by it in the relevant period; and
(b) all royalties and licence fees received by it in that period are in respect of films produced by it in that period or sound recordings in relation to such films or other products arising from such films.
(5) A trade shall not be treated as failing to comply with this section by reason only that at any time after 19th March 1985 it consists to a substantial extent of receiving royalties or licence fees if—
(a) the company carrying on the trade is engaged in research and development throughout the relevant period; and
(b) all royalties and licence fees received by it in that period are attributable to research and development which it has carried out.
(6) A trade shall not be treated as failing to comply with this section by reason only of its consisting of letting ships, other than oil rigs or pleasure craft, on charter if—
(a) every ship let on charter by the company carrying on the trade is beneficially owned by the company;
(b) every ship beneficially owned by the company is registered in the United Kingdom; and
(c) throughout the relevant period the company is solely responsible for arranging the marketing of the services of its ships; and
(d) the conditions mentioned in subsection (7) below are satisfied in relation to every letting on charter by the company;
but where any of the requirements mentioned in paragraphs (a) to (d) above are not satisfied in relation to any lettings of such ships, the trade shall not thereby be treated as failing to comply with this section if those lettings and any other activity of a kind falling within subsection (2) above do not, when taken together, amount to a substantial part of the trade.
(7) The conditions are that—
(a) the letting is for a period not exceeding 12 months and no provision is made at any time (whether in the lease or otherwise) for extending it beyond that period otherwise than at the option of the lessee;
(b) during the period of the letting there is no provision in force (whether made in the lease or otherwise) for the grant of a new letting to end, otherwise than at the option of the lessee, more than 12 months after that provision is made;
(c) the letting is by way of a bargain made at arm’s length between the company and a person who is not connected with it;
(d) under the terms of the charter the company is responsible as principal—
(i) for taking, throughout the period of the charter, management decisions in relation to the ship, other than those of a kind generally regarded by persons engaged in trade of the kind in question as matters of husbandry; and
(ii) for defraying all expenses in connection with the ship throughout that period, or substantially all such expenses, other than those directly incidental to a particular voyage or to the employment of the ship during that period; and
(e) no arrangements exist by virtue of which a person other than the company may be appointed to be responsible for the matters mentioned in paragraph (d) above on behalf of the company;
but this subsection shall have effect, in relation to any letting between the company in question and its subsidiary, or between it and another company of which it is a subsidiary or between it and a company which is a subsidiary of the same company of which it is a subsidiary, as if paragraph (c) were omitted.
(8) The trade must, during the relevant period, be conducted on a commercial basis and with a view to the realisation of profits.
(9) A trade which consists to any substantial extent of oil extraction activities shall, if it would be a qualifying trade were it not for subsection (2)(d) above, be treated as a qualifying trade for the purposes of section 289(1)(d).
(1) For the purposes of sections 293(9) and 297 a person has a controlling interest in a trade—
(a) in the case of a trade carried on by a company, if—
(i) he controls the company;
(ii) the company is a close company and he or an associate of his is a director of the company and the beneficial owner of, or able directly or through the medium of other companies or by any other indirect means to control, more than 30 per cent. of the ordinary share capital of the company; or
(iii) not less than half of the trade could in accordance with section 344(2) be regarded as belonging to him;
(b) in any other case, if he is entitled to not less than half of the assets used for, or the income arising from, the trade.
(2) For the purposes of subsection (1) above, there shall be attributed to any person any rights or powers of any other person who is an associate of his.
(3) References in this section and section 297 to a trade shall be construed without regard to so much of the definition of “trade” in section 832(1) as relates to adventures or concerns in the nature of trade; but the foregoing provisions do not affect the construction of references in section 297(2)(g) or subsection (1) above to a trade carried on by a person other than the company and those references shall be construed as including a reference to any business, profession or vocation.
(4) The Treasury may by order amend section 297 and this section, except in relation to shares issued before 19th March 1986, in such manner as they consider expedient.
(5) In section 297—
“film” means an original master negative of a film, an original master film disc or an original master film tape;
“oil rig” means any ship which is an offshore installation for the purposes of the [1971 c. 61.] Mineral Workings (Offshore Installations) Act 1971;
“pleasure craft” means any ship of a kind primarily used for sport or recreation;
“property development” means the development of land, by a company which has, or at any time has had, an interest in the land (within the meaning of section 294(5)), with the sole or main object of realising a gain from disposing of the land when developed; and
“sound recording” means, in relation to a film, its sound track, original master audio disc or, as the case may be, original master audio tape.
(6) Section 297 shall have effect in relation to shares issued before 19th March 1986 subject to the following modifications—
(a) in subsection (2) the words “or those activities when taken together amount” shall be omitted;
(b) subsection (2)(h) shall not apply unless the shares were issued after 19th March 1985;
(c) subsection (2)(j) shall not apply unless the shares were issued after 13th March 1984;
(d) in subsection (3) the words in paragraph (a) “to members of the general public for their use or consumption” and paragraph (c) shall be omitted; and
(e) subsections (6) and (7) shall be omitted;
and in relation to shares issued after 18th March 1986 section 297(2) shall have effect with the omission of paragraphs (h) and (j).
(7) Section 297(2) shall have effect so far as it relates to oil extraction only in relation to shares issued after 25th July 1986.
(8) Section 297(4) shall have effect in relation to shares issued before 17th March 1987 with the omission of paragraph (a)(ii), together with the word “or” immediately before it, (but not the word “and” at the end of it) and the words in paragraph (b) “in that period” in the second place where they appear.
(1) Where an individual disposes of any eligible shares before the end of the relevant period, then—
(a) if the disposal is otherwise than by way of a bargain made at arm’s length, he shall not be entitled to any relief in respect of those shares; and
(b) in any other case, the amount of relief to which he is entitled in respect of those shares shall be reduced by the amount or value of the consideration which he receives for them.
(2) Where after 18th March 1986 an option, the exercise of which would bind the grantor to purchase any shares, is granted to an individual during the relevant period, the individual shall not be entitled to any relief in respect of the shares to which the option relates.
(3) Where an individual holds ordinary shares of any class in a company and the relief has been given (and not withdrawn) in respect of some shares of that class but not others, any disposal by him of ordinary shares of that class in the company, and any option of the kind mentioned in subsection (2) above, shall be treated for the purposes of this section as relating—
(a) first, to those (if any) in respect of which relief has been given (and not withdrawn) under Chapter II of Part IV of the [1981 c. 35.] Finance Act 1981 rather than to others; and
(b) then, to those in respect of which relief has been given (and not withdrawn) under this Chapter (or Schedule 5 to the [1983 c. 28.] Finance Act 1983).
(4) Where the relief has been given (and not withdrawn) to an individual in respect of shares of any class in a company which have been issued to him at different times, any disposal by him of shares of that class shall, subject to subsection (3) above, be treated for the purposes of this section as relating to those issued earlier rather than to those issued later.
(5) Where shares in respect of which the relief was given have by virtue of any such allotment as is mentioned in section 77(2)(a) of the 1979 Act (not being an allotment for payment) fallen to be treated under section 78 of that Act as the same asset as a new holding—
(a) a disposal of the whole or part of the new holding shall be treated for the purposes of this section as a disposal of the whole or a corresponding part of those shares; and
(b) the new holding shall be treated for the purposes of subsection (3) above as shares in respect of which the relief has been given.
(6) For the purposes of this section—
(a) shares in a company shall not be treated as being of the same class unless they would be so treated if dealt with on the Stock Exchange; and
(b) references to a disposal of shares include references to the grant of an option (after 18th March 1986) the exercise of which would bind the grantor to sell the shares.
(1) Subject to section 299, where an individual who subscribes for eligible shares in a company—
(a) has, before the issue of the shares but within the relevant period, received any value from the company; or
(b) after their issue but before the end of the relevant period, receives any such value;
the amount of the relief to which he is entitled in respect of the shares shall be reduced by the value received; but the value received shall be disregarded to the extent to which relief under Schedule 5 to the [1983 c. 28.] Finance Act 1983 or under this Chapter has been reduced on its account.
(2) For the purposes of this section an individual receives value from the company if the company—
(a) repays, redeems or repurchases any of its share capital or securities which belong to the individual or makes any payment to him for giving up his right to any of the company’s share capital or any security on its cancellation or extinguishment;
(b) repays any debt owed to the individual other than a debt which was incurred by the company—
(i) on or after the date on which he subscribed for the shares in respect of which the relief is claimed; and
(ii) otherwise than in consideration of the extinguishment of a debt incurred before that date;
(c) makes to the individual any payment for giving up his right to any debt (other than a debt in respect of a payment of the kind mentioned in section 291(3)(a) or (e) or an ordinary trade debt) on its extinguishment;
(d) releases or waives any liability of the individual to the company or discharges, or undertakes to discharge, any liability of his to a third person;
(e) makes a loan or advance to the individual which has not been repaid in full before the issue of the shares in respect of which relief is claimed;
(f) provides a benefit or facility for the individual;
(g) transfers an asset to the individual for no consideration or for consideration less than its market value or acquires an asset from him for consideration exceeding its market value; or
(h) makes to him any other payment except a payment of the kind mentioned in section 291(3)(a), (b), (c), (d) or (e) or a payment in discharge of an ordinary trade debt.
(3) For the purposes of this section an individual also receives value from the company if he receives in respect of ordinary shares held by him any payment or asset in a winding up or in connection with a dissolution of the company, being a winding up or dissolution falling within section 293(6).
(4) The value received by an individual is—
(a) in a case within paragraph (a), (b) or (c) of subsection (2) above, the amount receivable by the individual or, if greater, the market value of the shares, securities or debt in question;
(b) in a case within paragraph (d) of that subsection, the amount of the liability;
(c) in a case within paragraph (e) of that subsection, the amount of the loan or advance reduced by the amount of any repayment made before the issue of the shares in respect of which relief is claimed;
(d) in a case within paragraph (f) of that subsection, the cost to the company of providing the benefit or facility less any consideration given for it by the individual;
(e) in a case within paragraph (g) of that subsection, the difference between the market value of the asset and the consideration (if any) given for it;
(f) in a case within paragraph (h) of that subsection, the amount of the payment; and
(g) in a case within subsection (3) above, the amount of the payment or, as the case may be, the market value of the asset.
(5) For the purposes of this section an individual also receives value from the company if any person who would, for the purposes of section 291, be treated as connected with the company—
(a) purchases any of its share capital or securities which belong to the individual; or
(b) makes any payment to him for giving up any right in relation to any of the company’s share capital or securities;
and the value received by the individual is the amount receivable by the individual or, if greater, the market value of the shares or securities in question.
(1) Where by virtue of section 300 any relief is withheld or withdrawn in the case of an individual to whom ordinary shares in a company have been issued at different times before 19th March 1986 the relief shall be withheld or withdrawn in respect of shares issued earlier rather than in respect of shares issued later.
(2) Where relief to which an individual is entitled in respect of eligible shares issued after 18th March 1986 is reduced by virtue of section 300, effect shall be given to the reduction by apportioning it, as between any such eligible shares held by him, in such a way as appears to the inspector, or on an appeal to the Commissioners concerned, to be just and reasonable.
(3) For the purposes of section 300(2)(d) a company shall be treated as having released or waived a liability if the liability is not discharged within 12 months of the time when it ought to have been discharged.
(4) For the purposes of section 300(2)(e) there shall be treated as if it were a loan made by the company to the individual—
(a) the amount of any debt (other than an ordinary trade debt) incurred by the individual to the company; and
(b) the amount of any debt due from the individual to a third person which has been assigned to the company.
(5) In this section and section 300, “an ordinary trade debt” means any debt for goods or services supplied in the ordinary course of a trade or business where the credit given does not exceed six months and is not longer than that normally given to the customers of the person carrying on the trade or business.
(6) In this section and section 300—
(a) any reference to a payment or transfer to an individual includes a reference to a payment or transfer made to him indirectly or to his order or for his benefit; and
(b) any reference to an individual includes a reference to an associate of his and any reference to the company includes a reference to any person connected with the company.
(7) Section 300 shall apply in relation to shares issued before 19th March 1986 with the omission—
(a) in subsection (2)(e) of the words “which has not been repaid in full before the issue of the shares in respect of which relief is claimed”; and
(b) in subsection (4)(c) of the words “reduced by the amount of any repayment made before the issue of the shares in respect of which relief is claimed”.
(1) An individual is not entitled to relief in respect of any shares in a company where—
(a) at any time in the relevant period, the company or any of its subsidiaries—
(i) begins to carry on as its trade or as part of its trade a trade which was previously carried on at any time in that period otherwise than by the company or any of its subsidiaries; or
(ii) acquires the whole, or greater part, of the assets used for the purposes of a trade previously so carried on; and
(b) subsection (2) below applies in relation to that individual.
(2) This subsection applies in relation to an individual where—
(a) any person or group of persons to whom an interest amounting in the aggregate to more than a half share in the trade (as previously carried on) belonged, at any time in the relevant period, is or are a person or group of persons to whom such an interest in the trade carried on by the company belongs or has, at any such time, belonged; or
(b) any person or group of persons who control or, at any such time, have controlled the company is or are a person or group of persons who, at any such time, controlled another company which previously carried on the trade;
and the individual is that person or one of those persons.
(3) An individual is not entitled to relief in respect of any shares in a company where—
(a) the company comes to acquire all of the issued share capital of another company, at any time in the relevant period; and
(b) any person or group of persons who control or have, at any such time, controlled the company is or are a person or group of persons who, at any such time, controlled that other company;
and that individual is that person or one of those persons.
(4) For the purposes of subsection (2) above—
(a) the persons to whom a trade belongs and, where a trade belongs to two or more persons, their respective shares in that trade shall be determined in accordance with section 344(1)(a) and (b), (2) and (3); and
(b) any interest, rights or powers of a person who is an associate of another person shall be treated as those of that other person.
(5) In this section—
“subsidiary” means a subsidiary of a kind which a qualifying company may have by virtue of sections 308 and 309; and
“trade” includes any business, profession or vocation, and references to a trade previously carried on include references to part of such a trade.
(1) The relief to which an individual is entitled in respect of any shares in a company shall be reduced in accordance with subsection (2) below if at any time in the relevant period the company repays, redeems or repurchases any of its share capital which belongs to any member other than—
(a) that individual; or
(b) another individual whose relief is thereby withdrawn or reduced by virtue of section 299 or reduced by virtue of section 300(2)(a);
or makes any payment to any such member for giving up his right to any of the company’s share capital on its cancellation or extinguishment.
(2) Where subsection (1) above applies, the amount of relief to which an individual is entitled shall be reduced by the amount receivable by the member or, if greater, the nominal value of the share capital in question; and where, apart from this subsection, two or more individuals would be entitled to relief the reduction shall be made in proportion to the amounts of relief to which they would, apart from this subsection, have been entitled.
(3) Where at any time in the relevant period a member of a company receives or is entitled to receive any value from the company within the meaning of this subsection, then, for the purposes of section 291(4) in its application to any subsequent time—
(a) the amount of the company’s issued ordinary share capital; and
(b) the amount of the part of that capital which consists of the shares which (within the meaning of section 291) the individual directly or indirectly possesses or is entitled to acquire, and the amount of the part consisting of the remainder,
shall each be treated as reduced in accordance with subsection (4) below.
(4) The amount of each of the parts mentioned in subsection (3)(b) above shall be treated as equal to such proportion of that amount as the amount subscribed for that part less the relevant value bears to the amount subscribed; and the amount of the issued share capital shall be treated as equal to the sum of the amounts treated under this subsection as the amount of those parts respectively.
(5) In subsection (4) above “the relevant value”, in relation to each of the parts there mentioned, means the value received by the member or members entitled to the shares of which that part consists.
(6) For the purposes of subsection (3) above a member of a company receives or is entitled to receive value from the company in any case in which an individual would receive value from the company by virtue of section 300(2)(d), (e), (f), (g) or (h) (but treating as excepted from paragraph (h) all payments made for full consideration) and the value received shall be determined as for the purposes of that section.
(7) For the purposes of subsection (6) above a person shall be treated as entitled to receive anything which he is entitled to receive at a future date or will at a future date be entitled to receive.
(8) Subsection (1) above does not apply in relation to the redemption of any share capital for which the redemption date was fixed before 15th March 1983.
(9) Where—
(a) a company issues share capital (“the original shares”) of nominal value equal to the authorised minimum (within the meaning of the [1985 c. 6.] Companies Act 1985) for the purposes of complying with the requirements of section 117 of that Act (public company not to do business unless requirements as to share capital complied with); and
(b) after the registrar of companies has issued the company with a certificate under section 117, it issues eligible shares;
subsection (1) above shall not apply in relation to any redemption of any of the original shares within 12 months of the date on which those shares were issued.
In relation to companies incorporated under the law of Northern Ireland references in this subsection to the [1985 c. 6.] Companies Act 1985 and to section 117 of that Act shall have effect as references to the [S.I. 1986/1032 (N.I. 6)] Companies (Northern Ireland) Order 1986 and to Article 127 of that Order.
(10) Where relief to which an individual is entitled in respect of eligible shares issued after 18th March 1986 is reduced by virtue of this section, effect shall be given to the reduction by apportioning it as between any such eligible shares held by him in such a way as appears to the inspector, or on appeal to the Commissioners concerned, to be just and reasonable.
(11) In relation to shares issued before 19th March 1986, subsection (1)(b) above shall have effect with the omission of the words “withdrawn or reduced by virtue of section 299 or”.
(1) In the case of any amount subscribed by a married woman for eligible shares issued to her at a time—
(a) when she is living with her husband; and
(b) which falls in a year of assessment for which his income includes (or, if there were any, would include) any of hers,
the deduction under section 289(5) shall, subject to Chapter II of this Part and subsections (2) to (5) below, be made from his total income, and references in this Chapter to the relief to which an individual is entitled in respect of any shares shall be construed accordingly.
(2) The limits in section 290 shall apply jointly to a husband and wife as respects amounts subscribed for shares at a time—
(a) when they are married and living together; and
(b) which falls in a year of assessment for which his income includes (or, if there were any, would include) any of hers;
but if the husband dies or they are divorced or cease to live together before the end of any such year those limits shall apply to the wife as respects amounts subscribed by her for shares issued in the remainder of the year as if it were a separate year of assessment.
(3) Where an application under section 283(1) or an election under section 287(1) is in force for a year of assessment in which shares are issued for which amounts have been subscribed both by the husband and the wife, then, if section 290(2) requires a restriction to be placed on the relief given on a claim or claims in respect of those amounts, the available relief shall be divided between the husband and wife in proportion to the amounts which have been respectively subscribed by them for the shares to which the claim or claims relate and which would, apart from the restriction, be eligible for the relief.
(4) Subsections (2) and (3) above shall apply in relation to the limit of £5,000 imposed by section 289(7) as it applies in relation to the limit of £40,000 imposed by section 290(2); and for this purpose the reference in subsection (3) above to a division in proportion to the amounts subscribed by the husband and wife shall be construed as a reference to a division in proportion to the aggregate amounts of the relevant deductions sought by each of them in their claims under section 289(6).
(5) Subsection (1) of section 299 shall not apply to a disposal made by a married woman to her husband at a time when she is living with him or to a disposal made at such a time by him to her; but where shares issued to one of them have been transferred to the other by a transaction inter vivos—
(a) that subsection shall apply on the disposal of the shares by the transferee to a third person; and
(b) if at any time the husband and wife are divorced or cease to live together and any of those shares have not been disposed of by the transferee before that time, any assessment for withdrawing relief in respect of those shares shall be made on the transferee.
(6) Where a husband and wife are divorced or cease to live together, then, if any relief given in respect of shares for which either of them has subscribed and which were issued while they were married and living together falls to be withdrawn by virtue of a subsequent disposal of those shares by the person who subscribed for them, any assessment for withdrawing that relief shall be made on the person making the disposal and shall be made by reference to the reduction of tax flowing from the amount of the relief regardless of any allocation of that relief under section 280 or of any allocation of the reduction under section 284.
(1) Where shares in respect of which relief has been given and not withdrawn have by virtue of any such allotment, otherwise than for payment, as is mentioned in section 77(2)(a) of the 1979 Act fallen to be treated under section 78 of that Act as the same asset as a new holding—
(a) a disposal of the whole or part of the new holding shall be treated for the purposes of this Part as a disposal of the whole or a corresponding part of those shares; and
(b) the new holding shall be treated for the purposes of section 299(3) as shares in respect of which relief has been given and not withdrawn.
(2) Where—
(a) there is, by virtue of any such allotment for payment as is mentioned in section 77(2)(a) of the 1979 Act, a reorganisation affecting ordinary shares in respect of which relief has been given; and
(b) immediately before the reorganisation the relief had not been withdrawn; and
(c) the amount of relief (or, where the relief has been reduced, the amount remaining) and the market value of the shares immediately before the reorganisation, exceeds their market value immediately after the reorganisation;
the relief shall be reduced by an amount equal to whichever is the smaller of those excesses.
(3) Subsection (2) above shall also apply where—
(a) an individual who has received, or become entitled to receive, in respect of any ordinary shares in a company, a provisional allotment of shares in or debentures of the company disposes of his rights; and
(b) subsection (2) above would have applied (apart from this subsection) had those rights not been disposed of but an allotment of shares or debentures made to him.
(4) This section has effect in relation to reorganisations occurring after 18th March 1986.
(1) A claim for relief in respect of eligible shares issued by a company in any year of assessment shall be made—
(a) not earlier than the end of the period of four months mentioned in section 289(8)(a), (b) or (c), as the case may be; and
(b) not later than two years after the end of that year of assessment or, if that period of four months ended after the end of that year, not later than two years after the end of that period.
(2) A claim for relief in respect of eligible shares in a company shall not be allowed unless it is accompanied by a certificate issued by the company in such form as the Board may direct and certifying that the conditions for the relief, so far as applying to the company and the trade, are satisfied in relation to those shares.
(3) Before issuing a certificate for the purposes of subsection (2) above a company shall furnish the inspector with a statement to the effect that it satisfies the conditions for the relief, so far as they apply in relation to the company and the trade, and has done so at all times since the beginning of the relevant period.
(4) No such certificate shall be issued without the authority of the inspector or where the company, or a person connected with the company, has given notice to the inspector under section 310(2).
(5) Any statement under subsection (3) above shall contain such information as the Board may reasonably require, shall be in such form as the Board may direct and shall contain a declaration that it is correct to the best of the company’s knowledge and belief.
(6) Where a company has issued a certificate for the purposes of subsection (2) above, or furnished a statement under subsection (3) above and—
(a) the certificate or statement is made fraudulently or negligently; or
(b) the certificate was issued in contravention of subsection (4) above;
the company shall be liable to a penalty not exceeding £250 or, in the case of fraud, £500.
(7) For the purposes of regulations made under section 203 no regard shall be had to the relief unless a claim for it has been duly made and admitted.
(8) No application shall be made under section 55(3) or (4) of the Management Act (application for postponement of payment of tax pending appeal) on the ground that the applicant is entitled to the relief unless a claim for the relief has been duly made by him.
(9) For the purposes of section 86 of the Management Act (interest on overdue tax), tax charged by an assessment—
(a) shall be regarded as due and payable notwithstanding that relief from the tax (whether by discharge or repayment) is subsequently given on a claim for the relief; but
(b) shall, unless paid earlier or due and payable later, be regarded as paid on the date of the making of the claim on which the relief is given;
and section 91 of that Act (effect on interest of reliefs) shall not apply in consequence of any discharge or repayment for giving effect to the relief.
(10) For the purposes of the provisions of the Management Act relating to appeals against decisions on claims, the refusal of the inspector to authorise the issue of a certificate under subsection (2) above shall be taken to be a decision refusing a claim made by the company.
This subsection shall not apply in relation to shares issued before 19th March 1986.
Income and Corporation Taxes Act 1988