Introduction Details of Schedule 11 Part 1 Chapter 6
121.Chapter 6, sections 257P to 257PD, explains the procedures for making claims.
122.New section 257P explains the time limits for making a claim to SI relief.
123.Subsection (1) says that the claim may not be made earlier than the end of the period of 4 months referred to in section 257MM(2). This requirement does not apply where the social enterprise is an accredited social impact contractor.  No claims may be made later than the fifth anniversary of the filing date for the tax year in which the investment was made.  Note: this overrides the normal claim period provided for in section 43 Taxes Management Act 1970.  This is to take account of the fact that the individual’s eligibility to claim depends on the enterprise having met certain conditions which may take some time to fulfil.
124.Subsection (2) provides that if the individual has made an election under section 257JA(4) to have some or all of the investment treated as though made in an earlier tax year, then subsection (1) above applies separately to that part of the investment as though it had been made in the earlier tax year.
125.New section 257PA deals with an individual’s entitlement to claim SI relief in respect of an investment in a social enterprise.
126.Subsection (1) provides that in order for an individual to be eligible to claim SI relief, the enterprise must provide the individual with a compliance certificate which can be provided to HMRC in support of a claim.
127.Subsections (2) and (3) provide that a claim to SI relief must have been made in order for the individual’s PAYE coding to be amended to take account of the SI relief, or for the individual to make any application for tax to be postponed pending the outcome of an appeal made on the grounds that SI relief will be available.
128.New section 257PB provides more detail about the compliance statement referred to in section 257PC(2).
129.Subsection (1) provides that it is a statement to the effect that, in respect of an investment, the conditions for the relief to apply have so far been met (other than those which have to be met by the individual), and the enterprise’s intention is that they will continue to be met for the duration of the relevant applicable period. It is therefore not possible for an enterprise to obtain authority to issue certificates under section 257PC once it has ceased to satisfy any condition. So for instance, coming under the control of another company would make the issue of certificates impossible.
130.Subsection (2) gives HMRC the power to prescribe the form and content of the compliance statement. The statement must include a declaration to the effect that the statement is correct to the best of the enterprise’s knowledge and belief, as well as any other declarations which HMRC may require.  It is anticipated that a declaration as to the quantum of de minimis State aid received by the enterprise (see section 257MA) will be required under this section.
131.Subsection (3) provides that an enterprise cannot submit a statement more than two years after the end of the year of assessment in which the investment was made, or more than two years after the end of the period of four months referred to in section 257MM(2). That four month period does not apply to accredited social impact contractors.
132.New section 257PC explains in more detail the requirements for an individual to obtain the compliance certificate referred to in section 257PA(1).
133.Subsection (1) explains that a compliance certificate is a certificate issued by the investee enterprise to the individual.  It must state that the requirements for SI relief have so far been met (other than those which have to be met by the individual), and it must be in a form prescribed by HMRC.
134.Subsection (2) and (3) provide that the enterprise may not issue a compliance certificate to an individual until it has provided HMRC with a compliance statement (see section 257PB), and before it has had authority to do so from HMRC.
135.Subsection (5) and (6) provides that HMRC must give a decision in respect of any application to it for authority to issue a compliance certificate, and that a refusal to give such authority is a matter against which the enterprise has the right of appeal as provided for in the Taxes Management Act 1970.
136.New section 257PE grants a power for the Treasury to amend by order the procedures relating to claims.