SCHEDULES

SCHEDULE 16Community investment tax relief

Part 3Qualifying investments

Introduction

8

For the purposes of this Schedule the investment is a “qualifying investment” in the CDFI if—

(a)

the investment consists of—

(i)

a loan in relation to which the conditions of paragraph 9 are satisfied,

(ii)

securities in relation to which the conditions of paragraph 10 are satisfied, or

(iii)

shares in relation to which the conditions of paragraph 11 are satisfied;

(b)

the investor receives from the CDFI a valid tax relief certificate in relation to the investment (see paragraph 12); and

(c)

the requirements of paragraph 13 are met in relation to pre-arranged protection against risks.