ANNEX 1:: MINOR CHANGES IN THE LAW MADE BY THE BILL Consequentials of restricted claims
Consequential changes are made to sections 201(2), (3) and (4), 210(1), 218(2), 219(2), 220(1), 226(2), 227(2), 228(2) and 229(1) of this Act. Their intention is that recovery of relief operates correctly if a restricted claim has been made.
Thus section 201(2) refers to the amounts:
“claimed by the individual in respect of each issue.”
The equivalent reference in section 289B(2) of ICTA is to the amounts:
“subscribed by the individual for each issue.”
In addition section 201(3), rewriting section 289B(3)(a) of ICTA, states:
“If under this section an amount of any reduction of income tax is attributed to an issue of shares…. a proportionate part of that amount is attributed to each share in respect of which the claim is made.”
An investor issued with shares of £500,000 in 2007-08, which exceeds the maximum of £400,000 on which relief can be obtained, can make a claim for relief on £400,000 worth of the shares. If there is a disposal of £100,000 of this holding, the identification rules in section 246(3) of this Act would apply.