SCHEDULES

C1SCHEDULE 16Community investment tax relief

Annotations:
Modifications etc. (not altering text)

Part 1Introduction

I12Meaning of “investment"

1

For the purposes of this Schedule, a F1company makes an investment in a body at any time when—

a

F1it makes a loan (whether secured or unsecured) to the body, or

b

an issue of securities of or shares in the body, for which F1it has subscribed, is made to F1it.

2

For the purposes of sub-paragraph (1)(a)—

a

a F2company does not make a loan to a body where—

i

the body uses overdraft facilities provided by that F2company, or

ii

that F2company 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.