IFM41305 - Administrative requirements: non-deliberate breach of ownership condition: cure attempted but not achieved

FA22/SCH2/PARAS 26, 27 and 29

Cure period requested

If a QAHC, upon discovering it has unintentionally breached the ownership condition, wishes to enter a cure period, and the conditions for a cure period are met, the QAHC must submit a ‘breach and cure’ notification (PARA 26 / PARA 27) as soon as reasonably practicable.

The QAHC will then have 90 days, beginning on the day on which the QAHC became aware of the breach of the ownership condition to cure the breach.

Request for longer cure period

HMRC may agree to a longer cure period in certain circumstances. The QAHC can make extension requests to HMRC’s QAHC team (see IFM41210 for contact details).

Details of what factors should be considered when HMRC receives extension requests can be found at IFM40430.

Breach not cured within cure period

If the breach of the ownership condition is not cured within the 90-day cure period (or a longer period agreed with HMRC), the company will exit the QAHC regime at the end of the cure period.

Example

A breach of the ownership condition occurred on 1 June. The QAHC became aware of the breach on 3 June and immediately submitted a breach and cure notification to HMRC. The 90-day cure period begins on 3 June (the date the QAHC becomes aware of the breach and not the date the notification is submitted). If the breach is not cured by 31 August (90 days after the date the QAHC became aware of the breach), the QAHC’s exit date will be 31 August.

There is no requirement to submit a ‘breach and exit’ notification once the cure period has passed. However, HMRC may contact the QAHC during or after the cure period to confirm its status.