IFM41280 - Administrative requirements: breaches of eligibility criteria (except the activity and ownership condition)
FA22/SCH2/PARA 26 and 29(1) to (2)
»Ê¹ÚÌåÓýapp general rule is that a QAHC ceases to be a QAHC when any of the eligibility criteria (at PARA 2) cease to be met. Guidance on the eligibility criteria starts at IFM40200.
Example
A breach of one of the eligibility criteria occurred on 31 January but the company only discovered this on 15 February. »Ê¹ÚÌåÓýapp company ceases to be a QAHC on 31 January, the exit date.
A ‘breach and exit� notification (PARA 26) should be submitted to HMRC as soon as reasonably practicable.
Exceptions
»Ê¹ÚÌåÓýappre are different rules for breaches of the ownership condition and the activity condition because sometimes these breaches may be cured (see IFM40430).
»Ê¹ÚÌåÓýapp consequences depend on whether or not the breach is deliberate. ‘Deliberateâ€� is defined at FA22/SCH2/PARA27(7)), see IFM40420.
Further guidance is available:
| Ìý | Non-deliberate breach | Deliberate breach |
|---|---|---|
| Ownership condition | IFM41290+ | IFM41330 |
| Activity condition | IFM41340 | IFM41350 |