C1Part 7Community investment tax relief
Chapter 3Qualifying investments
348Tax relief certificates
1
A “tax relief certificate” means a certificate issued by the CDFI in respect of the investment which is in the form specified by the Commissioners for Her Majesty's Revenue and Customs.
2
The CDFI must not issue tax relief certificates under this section in respect of investments made in the CDFI in an accreditation period if the total value of—
a
those investments, and
b
any investments to which subsection (3) applies,
will exceed the limit for that period.
3
This subsection applies to investments F1...—
a
F2which have been made in the CDFI in the accreditation period, and
b
in respect of which the CDFI has issued tax relief certificates under F3section 229 of CTA 2010 (which makes in relation to corporation tax provision corresponding to that made by this section).
4
The limit for an accreditation period is—
a
£10 million if the CDFI is accredited for the period as a retail community development finance institution (see section 340(8)), and
b
£20 million in any other case.
5
For the purposes of subsection (2) the value of an investment made in the CDFI is—
a
if the investment consists of a loan—
i
the amount of the loan, or
ii
if the loan agreement authorises the CDFI to draw down amounts of the loan over a period of time, the amount committed under the loan agreement, and
b
if the investment consists of securities or shares, the amount subscribed for them.
6
The Treasury may by order substitute any other amount for any amount for the time being specified in subsection (4).
7
8
Any tax relief certificate issued in contravention of subsection (2) is invalid.
9
A body is liable to a penalty of not more than £3,000 if it issues a tax relief certificate which is made fraudulently or negligently.
Pt. 7 modified by 2005 c. 7, s. 54A (as inserted (10.7.2008) by The Alternative Finance Arrangements (Community Investment Tax Relief) Order 2008 (S.I. 2008/1821), arts. 1, 2)