Part 1U.K.Introduction
Eligibility for tax reliefU.K.
1(1)[F1A company] (“the investor”) that makes an investment (“the investment”) in a body is eligible for relief in respect of the investment if—
(a)that body is accredited as a community development finance institution under this Schedule at the time the investment is made (see Part 2);
(b)the investment is a qualifying investment (see Part 3); and
(c)the general conditions of Part 4 are satisfied.
(2)In this Schedule references to “the CDFI” are to the body in which the investment is made.
Textual Amendments
F1Words in Sch. 16 para. 1(1) substituted (6.4.2007) by Income Tax Act 2007 (c. 3), s. 1034(1), Sch. 1 para. 419(2) (with Sch. 2)
Commencement Information
I1Sch. 16 para. 1 in force at 23.1.2003 by S.I. 2003/88, arts. 2, 3
Meaning of “investment"U.K.
2(1)For the purposes of this Schedule, a [F2company] makes an investment in a body at any time when—
(a)[F2it] makes a loan (whether secured or unsecured) to the body, or
(b)an issue of securities of or shares in the body, for which [F2it] has subscribed, is made to [F2it].
(2)For the purposes of sub-paragraph (1)(a)—
(a)a [F3company] does not make a loan to a body where—
(i)the body uses overdraft facilities provided by that [F3company], or
(ii)that [F3company] subscribes for or otherwise acquires securities of the body;
(b)where the loan agreement authorises the body to draw down amounts of the loan over a period of time, the loan is treated as made at the time when the first amount is drawn down.
Textual Amendments
F2Words in Sch. 16 para. 2(1) substituted (6.4.2007) by Income Tax Act 2007 (c. 3), s. 1034(1), Sch. 1 para. 419(3)(a) (with Sch. 2)
F3Word in Sch. 16 para. 2(2) substituted (6.4.2007) by Income Tax Act 2007 (c. 3), s. 1034(1), Sch. 1 para. 419(3)(b) (with Sch. 2)
Commencement Information
I2Sch. 16 para. 2 in force at 23.1.2003 by S.I. 2003/88, arts. 2, 3
Meaning of “the five year period"U.K.
3In this Schedule “the five year period” means the period of five years beginning with the day the investment is made (“the investment date”).
Commencement Information
I3Sch. 16 para. 3 in force at 23.1.2003 by S.I. 2003/88, arts. 2, 3