Part 7Community investment tax relief

Chapter 2Qualifying investments

227Conditions to be met in relation to securities

1

Condition A of this section is that the securities must be—

a

subscribed for wholly in cash, and

b

fully paid for on the investment date.

2

Condition B is that the securities must not carry—

a

any present or future right to be redeemed within the 5 year period, or

b

any present or future right to be converted into or exchanged for a loan which is, or securities, shares or other rights which are, redeemable within that period.

3

For the purposes of subsection (1)(b), securities are not fully paid for if there is any undertaking to pay cash to the CDFI at a future date in connection with the acquisition of the securities.