Beta This part of GOV.UK is being rebuilt – find out what beta means

HMRC internal manual

Community investment tax relief manual

Tax Relief: Corporate Investors - making and effect of claims

CTA2010/Part 7/Chapter 1/S220

This section applies to investments made in accounting periods beginning on or before 31st March 2013. For investments made after that date see CITM6051.

Where a company has made an investment that is eligible for relief under the CITR scheme (see CITM4005) the investor must make a claim to give effect to that relief. A claim may only be made after the end of the accounting period to which it relates. A separate claim must be made for each of the ‘relevant’ accounting periods for which relief is available.

The company tax return (form CT600) includes boxes in which the amount of community investment tax relief claimed can be entered.

Where a claim to relief is made the investor’s corporation tax liability for the relevant accounting period is reduced by the smaller of:

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

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

Meaning of ‘relevant accounting period’

‘Relevant’ accounting periods are:

  • the accounting period in which the date of the investment falls, and
  • each of the accounting periods in which the subsequent four anniversaries of that date fall.

The maximum amount of relief available to a corporate investor is 25% of the invested amount - 5% in each of five accounting periods.


A corporate investor subscribes £10,000 for shares in a CDFI on 1 June 2004. The shares are redeemable after six years. The company makes up its accounts to 30 September each year until 2006. After that the accounting date is changed to 31 December (with a short accounting period from 1 October 2006 - 31 December 2006).

The invested amount for each accounting period for which relief may be claimed is £10,000, (the amount subscribed). Tax relief of £500 (5% of £10,000) may be claimed for the accounting periods ended

30 September 2004

30 September 2005

30 September 2006

31 December 2007

31 December 2008

No relief may be claimed for the short accounting period that ends on 31 December 2006. Although this period is within five years of the investment date it does not include any anniversary of the investment date.