Part 7Community investment tax relief

Chapter 3Qualifying investments

348Tax relief certificates

1

A “tax relief certificate” means a certificate issued by the CDFI in respect of the investment which is in the form specified by the Commissioners for Her Majesty's Revenue and Customs.

2

The CDFI must not issue tax relief certificates under this section in respect of investments made in the CDFI in an accreditation period if the total value of—

a

those investments, and

b

any investments to which subsection (3) applies,

will exceed the limit for that period.

3

This subsection applies to investments which—

a

have been made in the CDFI in the accreditation period, and

b

in respect of which the CDFI has issued tax relief certificates under paragraph 12 of Schedule 16 to FA 2002 (which makes in relation to corporation tax provision corresponding to that made by this section).

4

The limit for an accreditation period is—

a

£10 million if the CDFI is accredited for the period as a retail community development finance institution (see section 340(8)), and

b

£20 million in any other case.

5

For the purposes of subsection (2) the value of an investment made in the CDFI is—

a

if the investment consists of a loan—

i

the amount of the loan, or

ii

if the loan agreement authorises the CDFI to draw down amounts of the loan over a period of time, the amount committed under the loan agreement, and

b

if the investment consists of securities or shares, the amount subscribed for them.

6

The Treasury may by order substitute any other amount for any amount for the time being specified in subsection (4).

7

Any such substitution is to have effect in relation to such accreditation periods as may be specified in the order; and those periods may, if the substitution increases the amount for the time being specified in subsection (4), include periods beginning before the order takes effect.

8

Any tax relief certificate issued in contravention of subsection (2) is invalid.

9

A body is liable to a penalty of not more than £3,000 if it issues a tax relief certificate which is made fraudulently or negligently.