SCHEDULES

C1SCHEDULE 16Community investment tax relief

Annotations:
Modifications etc. (not altering text)

Part 3Qualifying investments

I112Tax relief certificates

1

For the purposes of this Schedule a “tax relief certificate” means a certificate issued by the CDFI in respect of the investment, which is in such form as the Board may specify.

F12

The CDFI must not issue tax relief certificates in respect of investments made in the CDFI in an accreditation period if the aggregate value of—

a

those investments, and

b

any investments to which sub-paragraph (2A) applies,

will exceed the limit for that period.

2A

This sub-paragraph applies to investments which—

a

have been made in the CDFI in the accreditation period, and

b

in respect of which the CDFI has issued tax relief certificates under section 348 of ITA 2007 (which makes in relation to income tax provision corresponding to that made by this paragraph).

2B

The limit for an accreditation period is—

a

£10 million if the CDFI is accredited for the period as a retail community development finance institution (see section 340(8) of ITA 2007 as applied by paragraph 4), and

b

£20 million in any other case.

3

For the purposes of sub-paragraph (2) the value of an investment made in the CDFI is—

a

if the investment consists of a loan—

i

the amount of the loan, or

ii

where the loan agreement authorises the CDFI to draw down amounts of the loan over a period of time, the amount committed under the loan agreement; and

b

if the investment consists of securities or shares, the amount subscribed for them.

4

The Treasury may, by order, substitute for any amount for the time being specified in sub-paragraph F2(2B) such other amount as they think fit.

5

Any such substitution shall have effect in relation to such accreditation periods as may be specified in the order; and those periods may, if the substitution increases the amount for the time being specified in sub-paragraph F3(2B), include periods beginning before the order takes effect.

6

Any tax relief certificate issued wholly or partly in contravention of sub-paragraph (2) is invalid.

7

A body is liable to a penalty not exceeding £3000 if it issues a tax relief certificate which is made fraudulently or negligently.