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HMRC internal manual

Community investment tax relief manual

From
HM Revenue & Customs
Updated
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Tax Relief: Accreditation of the investor

CTA2010/Part 7/Chapter 4/S239

A corporate investor is not entitled to claim relief under the CITR scheme if the investor is itself accredited as a Community Development Finance Institution (CDFI) within the five year period beginning on the day the investment is made (the ‘five year period’).

Accreditation granted within the first year of the five year period

Where the accreditation is granted within the first year of the five year period no claim to relief may be made in respect of the investment.

Accreditation granted during second or subsequent year of the five year period

Where accreditation is granted during the second or subsequent year of the five year period the tax years or accounting periods for which investor are not entitled to claim relief can be established as follows:

Example

Investment made by company 1 June 2004
   
Investor accredited as CDFI 1 January 2007

Company accounting period ends 31 December each year

The last anniversary of the investment falling before the company was granted accreditation is 1 June 2006. This falls within the accounting period ending 31 December 2006. So no claim may be made for a.p.e.31 December 2006, or for any later accounting period.