Part 7Community investment tax relief
Chapter 1Introduction
CITR
220Form 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 accounting periods.
2
If the investor makes a claim for a relevant accounting period, the investor is entitled to a reduction in the amount of its liability for corporation tax for that period.
3
The amount of that reduction for the relevant accounting period is the smaller of the following amounts—
a
5% of the invested amount in respect of the investment for the period, and
b
the amount which reduces the investor's liability for corporation tax for the period to nil.
4
For this purpose the “relevant” accounting periods are—
a
the accounting period in which the investment date falls, and
b
each of the accounting periods in which the subsequent 4 anniversaries of that date fall.
5
The investor is entitled to make a claim for CITR for a relevant accounting period 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 229) relating to the investment from the CDFI,
but a claim may not be made before the end of the accounting period to which the claim relates.
6
Subsection (5) is subject to the following provisions—
a
section 236 (loans: no claim after disposal or excessive repayments or receipts of value),
b
section 237 (securities or shares: no claim after disposal or excessive receipts of value),
c
section 238 (no claim after loss of accreditation by the CDFI), and
d
section 239 (accreditation of investor).