SCHEDULES
SCHEDULE 16Community investment tax relief
Part 6Withdrawal of relief
I137Value received where there is more than one investment
1
This paragraph applies where—
a
the investor makes two or more investments in the CDFI (being investments in relation to which the investor is eligible for and claims relief), and
b
the investor receives value (other than value within paragraph 35(1)(a)) which falls within the periods of restriction relating to two or more of those investments.
2
Where this paragraph applies, paragraphs 31, 32, 34 and 38 have effect in relation to each investment referred to in sub-paragraph (1)(b) as if the amount of the value received were reduced by multiplying it by the fraction—
3
For this purpose—
a
A is the appropriate amount in respect of the investment in question, and
b
B is the aggregate of that amount and the appropriate amount or amounts in respect of the other investment or investments.
4
Where the investment consists of a loan, the appropriate amount for the purposes of sub-paragraph (3) is—
a
if the value is received in the first or second year of the period of restriction, the average capital balance of the loan for the second year of that period, and
b
if the value is received in a later year, the average capital balance of the loan for the year in question.
5
For the purposes of sub-paragraph (4)—
a
the average capital balance of the loan for a year is the mean of the daily balances of capital outstanding during the year, and
b
the receipt of value shall be disregarded when calculating the average capital balance for the year in question.
6
Where the investment consists of securities or shares, the appropriate amount for the purposes of sub-paragraph (3) is—
a
if the value is received in the first year of the period of restriction, the amount subscribed for the securities or shares, and
b
in any other case, the amount subscribed for such of the securities or shares as—
i
are held by the investor at the time the value is received, and
ii
have been held by him, as sole beneficial owner, continuously since the investment was made.