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Paragraph 42

Changes not yet applied. Later legislation changes this provision in ways not yet written into the text below:

(1)

A “compliance statement" is a statement, in respect of an issue of shares, to the effect that, except so far as they fall to be satisfied by or in relation to companies to which the shares included in that issue have been issued, the requirements for investment relief—

(a)

are for the time being met in relation to the shares to which the statement relates, and

(b)

have been so met at all times since the shares were issued.

In determining for the purposes of this sub-paragraph whether those requirements are met at any time in relation to the issue of shares, references in this Schedule to “the relevant shares” shall be read as references to the shares included in the issue.

(2)

A compliance statement must be in such form as the Inland Revenue direct and must contain—

(a)

such additional information as the Inland Revenue reasonably require,

(b)

a declaration that the statement is correct to the best of the issuing company’s knowledge and belief, and

(c)

such other declarations as the Inland Revenue reasonably require.

(3)

Without prejudice to the generality of sub-paragraph (2)(a) the information required by the Inland Revenue may include—

(a)

information relating to the companies to which compliance certificates may be issued under paragraph 41 in respect of any shares included in the issue of shares to which the statement relates, and

(b)

information to enable the Inland Revenue to determine whether the requirements of paragraph 35(2)(b) and (c) (shares to be subscribed for wholly in cash and fully paid up) are met in relation to shares included in that issue subscribed for by such companies.

(4)

The issuing company may not provide the Inland Revenue with a compliance statement in respect of any shares issued by it in any accounting period—

(a)

before the condition in paragraph 40(2)(a) (no claim until trade carried on for four months) is satisfied; or

(b)

later than two years after the end of that accounting period or, if that condition is first satisfied after the end of that accounting period, later than two years after the condition is first satisfied.