Part 7

Community investment tax relief
Chapter 1

Introduction

CITR

Form and amount of CITR
335
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 tax years.
2
If the investor makes a claim for a relevant tax year, the investor is entitled to a tax reduction for that year of 5% of the invested amount in respect of the investment for the year.
3
For the purposes of this section and section 335A the “relevant” tax years are—
a
the tax year in which the investment date falls, and
b
each of the 4 subsequent tax years.
4
The tax reduction is given effect at Step 6 of the calculation in section 23.
5
The investor is entitled to make a claim for CITR for a relevant tax year 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 348) relating to the investment from the CDFI,
but no claim may be made before the end of the tax year to which it relates.
6
Subsection (5) is subject to the following provisions—
a
section 354 (loans: no claim after disposal or excessive repayments or receipts of value),
b
section 355 (securities or shares: no claim after disposal or excessive receipts of value), and
c
section 356 (no claim after loss of accreditation by CDFI).
Pt. 7 modified by 2005 c. 7, s. 54A (as inserted (10.7.2008) by The Alternative Finance Arrangements (Community Investment Tax Relief) Order 2008 (S.I. 2008/1821), arts. 1, 2)
Words in s. 335(3) substituted (with effect in accordance with Sch. 27 para. 6 of the amending Act) by Finance Act 2013 (c. 29), Sch. 27 para. 2