Part 7Community investment tax relief
Chapter 1Introduction
Miscellaneous
221Meaning of “making an investment”
1
For the purposes of this Part, a company makes an investment in a body at any time when—
a
the company makes a loan (whether secured or unsecured) to the body, or
b
an issue of securities of or shares in the body, for which the company has subscribed, is made to the company.
2
The following provisions of this section apply for the purposes of subsection (1)(a).
3
A company does not make a loan to a body if—
a
the body uses overdraft facilities provided by the company, or
b
the company subscribes for or otherwise acquires securities of the body.
4
If 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.