Finance Act 2002

Part 1 U.K. Introduction

Eligibility for tax relief U.K.

1 (1) An individual or company (“the investor”) that makes an investment (“the investment”) in a body is eligible for relief in respect of the investment if—

(a) that body is accredited as a community development finance institution under this Schedule at the time the investment is made (see Part 2);

(b) the investment is a qualifying investment (see Part 3); and

(c) the general conditions of Part 4 are satisfied.

(2) In this Schedule references to “the CDFI” are to the body in which the investment is made.

Commencement Information

I1 Sch. 16 para. 1 in force at 23.1.2003 by S.I. 2003/88, arts. 2, 3

Meaning of “investment" U.K.

2 (1) For the purposes of this Schedule, a person makes an investment in a body at any time when—

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

(b) an issue of securities of or shares in the body, for which he has subscribed, is made to him.

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

(a) a person does not make a loan to a body where—

(i) the body uses overdraft facilities provided by that person, or

(ii) that person 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.

Commencement Information

I2 Sch. 16 para. 2 in force at 23.1.2003 by S.I. 2003/88, arts. 2, 3

Meaning of “the five year period" U.K.

3 In this Schedule “the five year period” means the period of five years beginning with the day the investment is made (“the investment date”).

Commencement Information

I3 Sch. 16 para. 3 in force at 23.1.2003 by S.I. 2003/88, arts. 2, 3