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HMRC internal manual

Community investment tax relief manual

Tax Relief: Information to be provided by the investor

CTA2010/Part 7/Chapter 6/S260; ITA/s373

An investor must notify the HMRC if

  • the investor has obtained relief for an investment under the CITR scheme, and
  • the amount of relief attributable to that investment for any tax year or accounting period is reduced or withdrawn because of a disposal of investment, excessive repayment of loan capital or receipt of value (see CITM7000 onwards).

The time limit for giving such notice depends on whether the investor is an individual or a company:

  • Individual Investors: 31 January following the tax year in which the event occurred
  • Corporate Investors: within 12 months of the end of the accounting period in which the event occurred.

But where the reduction or withdrawal of the relief is caused by the receipt of value by someone other than the investor (see CITM7140) the normal time limit is extended to 60 days from the time that the investor learns of the receipt.

Failing to give the required notice exposes the investor to a penalty under TMA70/s98.