CITM6130 - Tax Relief: Accreditation of the investor
CTA2010/Part 7/Chapter 4/S239
A corporate investor is not entitled to claim relief under the CITR scheme if the investor is itself accredited as a Community Development Finance Institution (CDFI) within the five year period beginning on the day the investment is made (the ‘five year period’).
Accreditation granted within the first year of the five year period
Where the accreditation is granted within the first year of the five year period no claim to relief may be made in respect of the investment.
Accreditation granted during second or subsequent year of the five year period
Where accreditation is granted during the second or subsequent year of the five year period the tax years or accounting periods for which investor are not entitled to claim relief can be established as follows:
Example
| Investment made by company | 1 June 2004 |
|---|---|
| Investor accredited as CDFI | 1 January 2007 |
Company accounting period ends 31 December each year
The last anniversary of the investment falling before the company was granted accreditation is 1 June 2006. This falls within the accounting period ending 31 December 2006. So no claim may be made for a.p.e.31 December 2006, or for any later accounting period.