Part 7Community investment tax relief

Chapter 1Introduction

CITR

335Form and amount of CITR

1

If the investor is eligible for CITR in respect of the investment, the investor may make a claim in respect of the investment for any one or more of the relevant tax years.

2

If the investor makes a claim for a relevant tax year, the investor is entitled to a tax reduction for that year of 5% of the invested amount in respect of the investment for the year.

3

For this purpose the “relevant” tax years are—

a

the tax year in which the investment date falls, and

b

each of the 4 subsequent tax years.

4

The tax reduction is given effect at Step 6 of the calculation in section 23.

5

The investor is entitled to make a claim for CITR for a relevant tax year if—

a

the investor considers that the conditions for the CITR are for the time being met, and

b

the investor has received a tax relief certificate (see section 348) relating to the investment from the CDFI,

but no claim may be made before the end of the tax year to which it relates.

6

Subsection (5) is subject to the following provisions—

a

section 354 (loans: no claim after disposal or excessive repayments or receipts of value),

b

section 355 (securities or shares: no claim after disposal or excessive receipts of value), and

c

section 356 (no claim after loss of accreditation by CDFI).