The Community Investment Tax Relief (Accreditation of Community Development Finance Institutions) Regulations 2003

Property investments, which are not relevant investments

8.—(1) Any investment which funds directly or indirectly the acquisition, construction or development of non-residential property where, on the next anniversary of the date on which the CDFI was granted accreditation, in consequence of that investment—

(a) the total amount of investment within Case 1 below exceeds the amount of relevant investments other than those in Case 1, or

(b) the total amount of investment within Case 2 below exceeds one half of the relevant investments within Case 1.

• Case 1

  1.1

  Investment in a non profit-distributing enterprise, the main activity of which is to hold and invest in or to develop non-residential property.

  1.2

  Investment in a development trust or other social enterprise for the purpose of investment in or development of non-residential property, whether owned by the trust or by others.

• Case 2

  2.1

  Investment in a profit-distributing enterprise, the main activity of which is holding land with the aim of benefiting from capital appreciation of that land, or with the aim of receiving income through the exploitation of an interest in it.

  2.2

  Investment in a profit-distributing enterprise, the main activity of which is non-residential property development.

(2) For the purposes of paragraph (1) where a investment is a loan which authorises the CDFI to draw down amounts of the loan over a period of time, the amount of the investment is the amount drawn down at the relevant date.