Finance Act 2002

Company investors

20 (1) This paragraph applies where the investor is—

(a) a company, and

(b) eligible for relief in respect of the investment (see paragraph 1(1)).

(2) Where the investor makes a claim for a relevant accounting period in respect of a loan, securities or shares in accordance with this Part, the amount of its liability for corporation tax for that period shall be reduced by the smaller of—

(a) 5% of the invested amount in respect of that loan or those securities or shares for the period, and

(b) the amount which reduces the investor’s liability to zero.

(3) 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 four anniversaries of that date fall.

(4) The investor is entitled to make a claim for relief for a relevant accounting period if—

(a) it appears to the investor that the conditions for the relief are for the time being satisfied, and

(b) it has received a tax relief certificate (see paragraph 12) relating to the investment from the CDFI,

but no claim may be made before the end of the accounting period to which it relates.

(5) Sub-paragraph (4) is subject to the following provisions—

(a) paragraph 22 (loans: no claim after disposal or excessive repayments or receipts of value);

(b) paragraph 23 (securities or shares: no claim after disposal or excessive receipts of value);

(c) paragraph 24 (loss of accreditation by CDFI);

(d) paragraph 25 (accreditation of the investor).