Finance Act, 1984
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Assessments for withdrawing relief. |
23.—(1) Where any relief has been given which is subsequently found not to have been due, it shall be withdrawn by the making of an assessment to tax under Case IV of Schedule D for the year of assessment for which the relief was given. | |
(2) Where any relief given in respect of shares for which either a husband or his wife has subscribed and which were issued while he was assessed in accordance with the provisions of section 194 (inserted by the Finance Act, 1980 ) of the Income Tax Act, 1967 , falls to be withdrawn by virtue of a subsequent disposal of those shares by the person who subscribed for them and at the time of the disposal the husband is not so assessable, any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 reduction under section 198 (1) and (2) (inserted by the Finance Act, 1980 ) of the Income Tax Act, 1967 , or any allocation of a repayment of tax under section 195A (inserted by the Finance Act, 1983 ) of the Income Tax Act, 1967 . | ||
(3) Subject to the following provisions of this section, any assessment for withdrawing relief which is made by reason of an event occurring after the date of the claim may be made within ten years after the end of the year of assessment in which that event occurs. | ||
(4) No assessment for withdrawing relief in respect of shares issued to any person shall be made by reason of any event occurring after his death. | ||
(5) Where a person has, by a disposal or disposals to which section 17 (1) (b) applies, disposed of all the ordinary shares issued to him by a company, no assessment for withdrawing relief in respect of any of those shares shall be made by reason of any subsequent event unless it occurs at a time when he is connected with the company within the meaning of section 14 . | ||
(6) Subsection (3) is without prejudice to the proviso to section 186 (2) (a) of the Income Tax Act, 1967 . | ||
(7) In its application to an assessment made by virtue of this section, section 550 of the Income Tax Act, 1967 , shall have effect as if the date on which the tax charged by the assessment becomes due and payable were— | ||
(a) in the case of relief withdrawn by virtue of section 14 , 15 , 16 , 19 or 20 (1) in consequence of any event after the grant of the relief, the date of that event; | ||
(b) in the case of relief withdrawn by virtue of section 17 (1) in consequence of a disposal after the grant of the relief, the date of the disposal; | ||
(c) in the case of relief withdrawn by virtue of section 18 in consequence of a receipt of value after the grant of the relief, the date of the receipt; | ||
(d) in the case of relief withdrawn by virtue of section 21 — | ||
(i) so far as effect has been given to the relief in accordance with regulations under section 127 of the Income Tax Act, 1967 , the 5th day of April in the year of assessment in which effect was so given; and | ||
(ii) so far as effect has not been so given, the date on which the relief was granted. | ||
(8) For the purposes of subsection (7) the date on which the relief is granted is the date on which a repayment of tax for giving effect to the relief was made or, if there was no such repayment, the date on which the inspector issued a notice to the claimant showing the amount of tax payable after giving effect to the relief. |