Income Tax Act 2007 section 257G

Assessments for the withdrawal or reduction of SEIS relief

Section 257G explains how SEIS income tax relief is formally withdrawn or reduced when the conditions for clawback under Chapter 6 are triggered.

• Where SEIS relief has been claimed and circumstances later require it to be withdrawn or reduced, this is done by way of an income tax assessment.
• The assessment is made for the tax year in which the relief was originally obtained, not the year in which the triggering event occurs.
• The withdrawal or reduction applies only where required under the provisions of Chapter 6, which sets out the specific circumstances in which relief can be clawed back.
• The mechanism ensures that the investor's tax position for the original year of relief is corrected through a formal assessment process.