VCM26500 - Enterprise Investment Scheme (EIS): Income Tax relief: Withdrawal or reduction of relief - information powers

ICTA/S310 (4); ITA/S242

If an HMRC officer has reason to believe that a person has failed to give notice of an event which removes the entitlement to relief that person may be required, by notice in writing, to furnish such information relating to any event as may reasonably be required. The time limit allowed for furnishing the information must not be less than 60 days.

ICTA/S310 (4) and ITA/S242 must not be used to issue speculative notices. Any information required under a notice must be confined to matters that may cause the withdrawal of relief.

Failure to comply with a notice given under ICTA/S310 (4) or ITA/S242 attracts penalties under TMA70/S98.

The officer is not precluded by the obligation to secrecy from disclosing to a company, in the course of exercising the power to require information, that relief has been claimed or given in respect of any of its shares.