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HMRC internal manual

Community investment tax relief manual

Tax Relief: Individual Investors - effect of a claim


This section applies to investments made on or before 5th April 2013. For investments made after that date see CITM6031

Where a claim to CITR is made the investor’s income tax liability for the relevant tax year is reduced by the smaller of:

  • 5% of ‘the invested amount’ (see CITM6090) for the year, and
  • the amount that reduces his income tax liability to zero

If an investor cannot make use of his maximum entitlement to relief for the year any excess is lost.

Meaning of ‘relevant tax year’

‘Relevant’ tax years are:

  • the tax year in which the date of the investment falls, and
  • each of the four subsequent tax years.

So the maximum amount of relief available to an investor is 25% of the invested amount - 5% in each of five tax years.