SCHEDULES
SCHEDULE 16Community investment tax relief
Part 6Withdrawal of relief
I128Disposal of loan during five year period
1
Where the investment consists of a loan, if within the five year period—
a
the investor disposes of the whole of the investment, otherwise than by way of a permitted disposal, or
b
the investor disposes of a part of the investment,
any relief attributable to the investment in respect of any tax year or accounting period must be withdrawn.
2
For the purposes of this paragraph—
a
a disposal is “permitted” if—
i
it is by way of a distribution in the course of dissolving or winding up the CDFI,
ii
it is a disposal within section 24(1) of the 1992 Act (entire loss, destruction, dissipation or extinction of asset),
iii
it is a deemed disposal under section 24(2) of that Act (claim that value of asset has become negligible), or
iv
it is made after the CDFI has ceased to be accredited under this Schedule, and
b
a full or partial repayment of the loan shall not be treated as giving rise to a disposal.