(1) For the purposes of this Chapter the market value of a qualifying investment is determined in accordance with sections 272 to 274 of TCGA 1992 (subject to Part I of Schedule 11 to that Act).
(2) But, in the case of an interest in an offshore fund for which separate buying and selling prices are published regularly by the managers of the fund, the market value for the purposes of this Chapter is an amount equal to the buying price (that is the lower price) published on—
(a) the day of the disposal, or
(b) if none were published on that day, the latest day on which the prices were published before that day.
(3) In this section “offshore fund” has the meaning given by section 355 of TIOPA 2010.
(1) For the purposes of this Chapter the acquisition value of a qualifying investment disposed of by a company is—
(a) where the qualifying investment was acquired by the company within the period of 4 years ending with the day on which the disposal is made, the cost to the company of acquiring it, or
(b) where something from which the qualifying investment derives or which it represents was so acquired, such proportion of the cost to the company of acquiring that thing as is just and reasonable to attribute to the qualifying investment.
(2) A reference in subsection (1) to the cost to the company of an acquisition is to—
(a) the consideration given by the company for the acquisition, less
(b) any amount that is received in connection with the acquisition, by the company or a person connected with it, as part of the scheme in question.
(1) For the purposes of this Chapter an obligation is a “disposal-related obligation”, in relation to a qualifying investment, if condition A or B is met in relation to it.
(2) The obligation may be to any person (whether or not the company making the disposal or a person connected with it).
(3) Condition A is that it is reasonable to suppose that the disposal of the qualifying investment to the charity would not have been made in the absence of the obligation.
(4) Condition B is that the obligation (whether in whole or in part) relates to, is framed by reference to, or is conditional on the charity receiving, the qualifying investment or a disposal-related investment.
(5) In applying condition A all the circumstances must be taken into account (including in particular the difference in the value of the net benefit to the charity calculated under section 209(1)(a) and that value calculated under section 209(1)(b) on the assumption that the obligation under consideration is a disposal-related obligation).
(6) In subsection (4) “disposal-related investment” means any of the following—
(a) an asset of the same class or description as the qualifying investment (irrespective of size, quantity or amount),
(b) an asset derived from, or representing, the qualifying investment, whether in whole or in part and whether directly or indirectly, and
(c) an asset from which the qualifying investment is derived, or which the qualifying investment represents, whether in whole or in part and whether directly or indirectly.
(7) In this section “obligation” includes a reference to each of the following—
(a) a scheme, arrangement or understanding of any kind, whether or not legally enforceable, and
(b) a series of obligations (whether or not between the same parties).
212 Meaning and amount of “disposal-related liability”
(1) For the purposes of this Chapter a liability is a “disposal-related liability” in the case of a qualifying investment if it is a liability of the charity under a disposal-related obligation in relation to the qualifying investment.
(2) If the disposal-related obligation is contingent, the amount to be brought into account for the purposes of section 209 at any time in respect of the disposal-related liability, so far as contingent, is—
(a) if the contingency occurs, the amount or value of the liability actually incurred in consequence of the occurrence of the contingency, or
(b) if the contingency does not occur, nil.
(1) This section applies if the qualifying investment is a qualifying interest in land.
(2) A company may not make a claim under section 203 unless the company has received a certificate given by or on behalf of the charity.
(3) The certificate must—
(a) describe the qualifying interest in land,
(b) specify the date of the disposal, and
(c) state that the charity has acquired the qualifying interest in land.
(1) This section applies if the qualifying investment is a qualifying interest in land.
(2) It applies if two or more persons (“the owners”)—
(a) are jointly beneficially entitled to the qualifying interest in land, or
(b) are, taken together, beneficially entitled in common to the qualifying interest in land.
(3) Relief as a result of this Chapter is available if—
(a) at least one of the owners is a qualifying company, and
(b) all the owners dispose of the whole of their beneficial interests in the qualifying interest in land to the charity.
(4) Relief as a result of this Chapter is available to each of the owners which is a qualifying company (and section 215 applies).
(5) A company is a qualifying company if it is not itself a charity.
(6) Subsection (7) applies if one or more of the owners is not a company.
(7) For the purpose of determining whether the owners' beneficial interests are disposed of as mentioned in subsection (3)(b), section 205(2) to (4) applies as if references to a company included references to a person who is not a company.
215 Calculation of relievable amount etc where joint disposal of interest in land
(1) If relief as a result of this Chapter is available because of section 214, this section applies for the purpose of finding—
(a) the relievable amount, and
(b) the amount of relief to be given to a qualifying company.
(2) If one or more of the owners is an individual, subsections (3) and (4) apply.
(3) The relievable amount is taken to be the relievable amount calculated for the purposes of Chapter 3 of Part 8 of ITA 2007.
(4) The amount of relief to be given to a qualifying company as a result of this Chapter is calculated on the basis that the reference in section 203(2) to the relievable amount is read as a reference to such share of the relievable amount found under subsection (3) above as is allocated to the company by the agreement mentioned in section 442(5) of ITA 2007.
(5) If none of the owners is an individual, subsections (6) to (9) apply.
(6) Calculate the relievable amount under this Chapter as if—
(a) the owners were a single qualifying company, and
(b) the disposals of the owners' beneficial interests were a single disposal by that single company of the whole of the beneficial interest in the qualifying interest in land.
(7) In particular, calculate the consideration mentioned at Step 1 in section 206(4) by—
(a) calculating, for each owner, the consideration for which the disposal of the owner's beneficial interest is treated as made for the purposes of TCGA 1992 as a result of section 257(2)(a) of that Act, and
(b) adding together all the consideration calculated under paragraph (a).
(8) If one or more of the owners is not a qualifying company, in calculating the relievable amount make just and reasonable adjustments to reduce the relievable amount to reflect the fact that relief as a result of this Chapter is not available to that owner or to those owners.
(9) The amount of relief to be given to a qualifying company as a result of this Chapter is calculated on the basis that the reference in section 203(2) to the relievable amount is read as a reference to such share of the relievable amount found under subsections (6) to (8) above as is allocated to the company by an agreement made between those owners which are qualifying companies.
(1) This section applies if the qualifying investment is a qualifying interest in land.
(2) If a disqualifying event occurs at any time in the provisional period, the following are treated as never having been entitled to relief as a result of this Chapter in respect of the disposal of the qualifying interest in land—
(a) in a case where sections 214 and 215 do not apply, the company which made the disposal, and
(b) in a case where those sections apply, each qualifying company which is an owner.
(3) All such assessments and adjustments of assessments are to be made as are necessary to give effect to subsection (2).
(4) A disqualifying event occurs if a person mentioned in subsection (5) becomes (otherwise than for full consideration in money or money's worth)—
(a) entitled to an interest or right in relation to all or part of the land to which the disposal relates, or
(b) party to an arrangement under which he enjoys some right in relation to all or part of that land.
(5) The persons are—
(a) in a case where sections 214 and 215 do not apply, the company which made the disposal or a person connected with that company, and
(b) in a case where those sections apply, a person who is an owner or a person connected with such a person.
(6) A disqualifying event does not occur if a person becomes entitled to an interest or right as mentioned in subsection (4)(a) as a result of a disposition of property on death (whether the disposition is effected by will, under the law relating to intestacy or otherwise).
(7) “The provisional period” is the period beginning with the date of the disposal of the qualifying interest in land and ending with the sixth anniversary of the end of the accounting period in which the disposal was made.
(1) A payment made by a company which is qualifying expenditure on grassroots sport (and which is not refunded) is allowed as a deduction in accordance with this section from the company's total profits in calculating the corporation tax chargeable for the accounting period in which the payment is made.
(2) The deduction is from the company's total profits for the accounting period after any other relief from corporation tax other than—
(a) relief under Part 6,
(b) group relief, and
(c) group relief for carried-forward losses.
(3) If the company is a qualifying sport body at the time of the payment, a deduction is allowed for the amount of the payment.
See section 217C for the meaning of “qualifying sport body”.
(4) If the company is not a qualifying sport body at the time of the payment, a deduction is allowed—
(a) if the payment is to a qualifying sport body, for the amount of the payment, and
(b) if the payment does not fall within paragraph (a) (a “direct payment”), in accordance with subsections (7) and (8).
(5) If at any time on or after 1 April 2017 the company receives income for use for charitable purposes which are purposes for facilitating participation in amateur eligible sport, a deduction is allowed only if, and in so far as, the payment exceeds an amount which is equal to the amount of that income which—
(a) the company does not have to bring into account for corporation tax purposes, and
(b) has not previously been taken into account under this subsection to disallow a deduction under this Part of all or any part of a payment.
See section 217B(3) for the meaning of terms used in this subsection.
(6) But in any case, the amount of the deduction is limited to the amount that reduces the company's taxable total profits for the accounting period to nil.
(7) If the total of all the direct payments made by the company in the accounting period is equal to or less than the maximum deduction for direct payments, a deduction is allowed under subsection (4)(b) in respect of that total.
(8) If the total of all the direct payments made by the company in the accounting period is more than the maximum deduction for direct payments, a deduction is allowed under subsection (4)(b) in respect of so much of that total as does not exceed the maximum deduction for direct payments.
(9) The maximum deduction for direct payments is £2,500 or, if the accounting period is shorter than 12 months, a proportionately reduced amount.
(10) The Treasury may by regulations amend subsection (9) by substituting a higher amount for the amount for the time being specified there.
217B Meaning of qualifying expenditure on grassroots sport
(1) For the purposes of this Part, a payment is qualifying expenditure on grassroots sport if—
(a) it is expenditure incurred for charitable purposes which are purposes for facilitating participation in amateur eligible sport, and
(b) apart from this Part, no deduction from total profits, or in calculating any component of total profits, would be allowed in respect of the payment.
For the meaning of charitable purposes, see sections 2, 7 and 8 of the Charities Act 2011.
(2) Where expenditure is incurred for both—
(a) charitable purposes which are purposes for facilitating participation in amateur eligible sport, and
(b) other purposes,
then, for the purposes of subsection (1), it is to be apportioned between the purposes in paragraph (a) and the purposes in paragraph (b) on a just and reasonable basis.
(3) For the purposes of section 217A(5) and subsection (1)(a)—
(a) paying a person to play or take part in a sport does not facilitate participation in amateur sport, but paying coaches or officials for their services may do so, and
(b) “eligible sport” means a sport that for the time being is an eligible sport for the purposes of Chapter 9 of Part 13 (see section 661).
(1) For the purposes of this Part, a “qualifying sport body” is—
(a) a recognised sport governing body;
(b) a body which is wholly owned by a recognised sport governing body.
(2) A “recognised sport governing body” is a body which is included from time to time in a list, maintained by the National Sports Councils, of governing bodies of sport recognised by them.
(3) The Treasury may by regulations—
(a) amend this section for the purpose of altering the meaning of “qualifying sport body”;
(b) designate bodies to be treated as qualifying sport bodies for the purposes of this Part.
(4) Regulations under section (3)(b) may designate a body by reference to its inclusion in a class or description of bodies.
(5) In this section “the National Sports Councils” means—
(a) the United Kingdom Sports Council,
(b) the English Sports Council,
(c) the Scottish Sports Council,
(d) the Sports Council for Wales, and
(e) the Sports Council for Northern Ireland.
(6) Regulations under subsection (3)(b) made before 1 April 2018 may include provision having effect in relation to times before the regulations are made (but not times earlier than 1 April 2017).
If, but for section 217A, an amount—
(a) would be deductible under Part 6, or
(b) would be deductible under Part 6 but for Chapter 2A of Part 6,
the amount is not deductible under this Part, and nothing in this Part affects the amount's deductibility (or non-deductibility) under Part 6.
This Part provides for community investment tax relief (“CITR”), that is, entitlement to tax reductions in respect of amounts invested by companies in community development finance institutions.
(1) A company (“the investor”) which makes an investment (“the investment”) in a body is eligible for CITR in respect of the investment if—
(a) at the time the investment is made the body is accredited as a community development finance institution under Chapter 2 of Part 7 of ITA 2007,
(b) the investment is a qualifying investment (see Chapter 2 of this Part), and
(c) the general conditions of Chapter 3 of this Part are met.
(2) In this Part references to “the CDFI” are to the body in which the investment is made.
(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 accounting periods.
(2) If the investor makes a claim for a relevant accounting period, the investor is entitled to a reduction in the amount of its liability for corporation tax for that period.
(3) The amount of that reduction for the relevant accounting period is 5% of the invested amount in respect of the investment for the period.
(4) For the purposes of this section and section 220A the “relevant” accounting periods are—
(a) the accounting period in which the investment date falls, and
(b) each of the accounting periods in which the subsequent 4 anniversaries of that date fall.
(5) The investor is entitled to make a claim for CITR for a relevant accounting period 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 229) relating to the investment from the CDFI,
but a claim may not be made before the end of the accounting period to which the claim relates.
(6) Subsection (5) is subject to the following provisions—
(a) section 236 (loans: no claim after disposal or excessive repayments or receipts of value),
(b) section 237 (securities or shares: no claim after disposal or excessive receipts of value),
(c) section 238 (no claim after loss of accreditation by the CDFI), and
(d) section 239 (accreditation of investor).
(1) This section applies if—
(a) the investor is entitled to a reduction in its liability for corporation tax for a relevant accounting period under section 220 in respect of the investment, but
(b) the amount of the reduction is not fully deducted at Step 2 for that relevant accounting period.
(2) The amount (“the excess amount”) not deducted is treated as follows.
(3) For each subsequent relevant accounting period for which the investor—
(a) is entitled to a reduction in its liability for corporation tax under section 220 in respect of the investment, and
(b) makes a claim under this subsection,
the investor is also entitled to a reduction in its liability for corporation tax under this subsection.
(4) The amount of the reduction under subsection (3) for any relevant accounting period is the excess amount so far as it has not been deducted at Step 2 for any earlier relevant accounting period by virtue of that subsection.
(5) In this section “Step 2” means the second step in paragraph 8(1) of Schedule 18 to FA 1998 (calculation of tax payable).
(1) The reductions that may be made in the amount of the investor's liability for corporation tax under section 220 or 220A for an accounting period (“the current accounting period”) are limited as follows.
(2) The sum of the following amounts must not exceed [euro]200,000—
(a) so far as it represents aid granted to the investor, the total amount of reductions made in the amount of the investor's liability for corporation tax under section 220 or 220A—
(i) for the current accounting period, or
(ii) any earlier accounting period which ends during the relevant 3-year period, and
(b) the total of any de minimis aid granted to the investor during the relevant 3-year period which does not fall within paragraph (a).
(3) In subsection (2) “the relevant 3-year period” means the period of 3 years ending at the end of the current accounting period.
(4) Subsection (2) is to be read as if it were contained in Article 2 of Commission Regulation (EC) No. 1998/2006 (de minimis aid).
(1) For the purposes of this Part, a company makes an investment in a body at any time when—
(a) the company makes a loan (whether secured or unsecured) to the body, or
(b) an issue of securities of or shares in the body, for which the company has subscribed, is made to the company.
(2) The following provisions of this section apply for the purposes of subsection (1)(a).
(3) A company does not make a loan to a body if—
(a) the body uses overdraft facilities provided by the company, or
(b) the company subscribes for or otherwise acquires securities of the body.
(4) If the loan agreement authorises the body to draw down amounts of the loan over a period of time, the loan is treated as made at the time when the first amount is drawn down.
(1) This section applies for the purpose of determining “the invested amount” in respect of any loan, securities or shares included in the investment.
This is subject to sections 246(2) and 252 (which adjust “the invested amount” in certain cases where value is received).
(2) In the case of a loan, the invested amount is—
(a) for the accounting period in which the investment date falls, the average capital balance for the first year of the 5 year period,
(b) for the accounting period in which the first anniversary of the investment date falls, the average capital balance for the second year of the 5 year period, and
(c) for any subsequent accounting period—
(i) the average capital balance for the period of 12 months beginning with the anniversary of the investment date falling in the accounting period concerned, or
(ii) if less, the average capital balance for the period of 6 months beginning 18 months after the investment date.
(3) In the case of securities or shares, the invested amount for an accounting period is the amount subscribed by the investor for the securities or shares.
(4) For the purposes of this section, the average capital balance of the loan for a period is the mean of the daily balances of capital outstanding during the period.
223 Meaning of “the 5 year period” and “the investment date”
In this Part—
“the 5 year period” means the period of 5 years beginning with the investment date, and
“the investment date” means the day the investment is made.
In this Part—
(a) Chapter 4 provides for limitations on claims and the attribution of CITR to investments,
(b) Chapter 5 provides for CITR to be withdrawn or reduced in the circumstances mentioned in that Chapter, and
(c) Chapter 6 contains supplementary and general provision.
For the purposes of this Part the investment is a “qualifying investment” in the CDFI if—
(a) the investment consists of—
(i) a loan in relation to which the conditions of section 226 are met,
(ii) securities in relation to which the conditions of section 227 are met, or
(iii) shares in relation to which the conditions of section 228 are met,
(b) the investor receives from the CDFI a valid tax relief certificate in relation to the investment (see section 229), and
(c) the requirements of section 230 (no pre-arranged protection against risks) are met.
(1) Condition A of this section is that either—
(a) the CDFI receives from the investor, on the investment date, the full amount of the loan, or
(b) if the loan agreement authorises the CDFI to draw down amounts of the loan over a period of time, the end of that period is not later than 18 months after the investment date.
(2) Condition B is that the loan must not carry 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 the 5 year period.
(3) Condition C is that the loan must not have been made on terms that allow any person to require—
(a) the repayment during the first two years of the 5 year period of any of the loan capital advanced in those two years,
(b) the repayment during the third year of that period of more than 25% of the loan capital outstanding at the end of those two years,
(c) the repayment before the end of the fourth year of that period of more than 50% of that loan capital, or
(d) the repayment before the end of that period of more than 75% of that loan capital.
(4) Subsection (3) does not apply if the CDFI is required to make the repayment as a result of its failure to meet any obligation of the loan agreement which—
(a) is imposed merely because of the commercial risks to which the investor is exposed as lender under that agreement, and
(b) is no more likely to be breached than any obligation that might reasonably have been agreed in respect of the loan in the absence of this Part.
(5) The Treasury may by order substitute any other percentage for any percentage for the time being specified in subsection (3).
(6) Any such substitution is to have effect in relation to loans made by a company on or after the date specified in the order.
227 Conditions 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.
(1) Condition A of this section is that the shares must be—
(a) subscribed for wholly in cash, and
(b) fully paid up on the investment date.
(2) Condition B is that the shares must not carry—
(a) any present or future right to be redeemed during 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) shares are not fully paid up if there is any undertaking to pay cash to the CDFI at a future date in connection with the acquisition of the shares.
(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—
(a) which have been made in the CDFI in the accreditation period, and
(b) in respect of which the CDFI has issued tax relief certificates under section 348 of ITA 2007 (which makes in relation to income tax provision corresponding to that made by this section).
(4) The limit for an accreditation period is—
(a) £25 million if the CDFI is accredited for the period as a retail community development finance institution (see section 340(8) of ITA 2007), and
(b) £100 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 an amount for the time being specified in subsection (4), include periods beginning before the order comes into force.
(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.
(10) An accreditation period is a period for which accreditation of the CDFI has effect under Chapter 2 of Part 7 of ITA 2007.
(1) Any arrangements—
(a) under which the investment is made, or
(b) made, before the investor makes the investment, in relation to or in connection with the making of the investment,
must not include excluded arrangements.
(2) For the purposes of subsection (1) “excluded arrangements”—
(a) means arrangements the main purpose or one of the main purposes of which is (by means of any insurance, indemnity or guarantee or otherwise) to provide partial or complete protection for the investor against what would otherwise be the risks attached to making the investment, but
(b) does not include any arrangements which are confined to the provision for the investor of any protection against those risks which might reasonably be expected to be provided for commercial reasons if the investment were made in the course of a business of banking.
(3) For the purposes of this section “arrangements” includes any scheme, agreement or understanding (whether or not legally enforceable).
(1) The investor must not control the CDFI at any time during the 5 year period.
(2) In this section references to the investor include any person connected with the investor.
(3) If the CDFI is a body corporate, the question whether the investor controls the CDFI is, for the purposes of this section, determined in accordance with section 1124.
This is subject to subsection (6).
(4) In any other case the investor is treated, for those purposes, as having control of the CDFI if the investor has power to secure, as a result of—
(a) the possession of voting power in the CDFI, or
(b) any powers conferred by the constitution of, or any other document regulating, the CDFI,
that the affairs of the body are conducted in accordance with the investor's wishes.
This is subject to subsections (5) and (6).
(5) If—
(a) the CDFI is a partnership, and
(b) the investor is a member of that partnership,
for the purposes of determining in accordance with this section whether the investor controls the CDFI, the other members of that partnership are not, as a result of their membership of the CDFI, treated as partners of the investor.
(6) In determining whether the investor controls the CDFI there are attributed to the investor (so far as it would not otherwise be the case)—
(a) any rights or powers that the investor is entitled to acquire at a future date or will, at a future date, become entitled to acquire, and
(b) any rights or powers which another person holds on behalf of the investor or may be required to exercise, by direction, on the investor's behalf.
(1) The investor must be the sole beneficial owner of the investment when it is made.
(2) If the investment consists of a loan, the person beneficially entitled to repayment of the loan is treated as the beneficial owner of the loan for the purposes of this Part.
(1) If the CDFI is a partnership, the investment must not consist of or include any amount of capital contributed by the investor on becoming a member of the partnership.
(2) For this purpose the amount of capital contributed by the investor on becoming a member of the partnership includes any amount which—
(a) purports to be provided by the investor by way of loan capital, and
(b) is accounted for as partners' capital in the accounts of the partnership.
236 Loans: no claim after disposal or excessive repayments or receipts of value
(1) If the investment consists of a loan, no claim may be made for an accounting period if—
(a) the investor disposes of the whole or any part of the loan before the qualifying date relating to that period,
(b) at any time after the investment is made but before that qualifying date, the amount of the capital outstanding on the loan is reduced to nil, or
(c) before that qualifying date, paragraphs (a) and (b) of section 245(1) (repayments of loan in 5 year period exceeding permitted limits) apply in relation to the investment (whether by virtue of section 246 (receipts of value treated as repayments) or otherwise).
(2) For the purposes of subsection (1)(a) any repayment of the loan is to be ignored.
(3) For the purposes of this section the qualifying date relating to an accounting period is the next anniversary of the investment date to occur after the end of that period.
237 Securities or shares: no claim after disposal or excessive receipts of value
(1) If the investment consists of securities or shares, a claim made for an accounting period must relate only to those securities or shares held by the investor, as sole beneficial owner, continuously throughout the period—
(a) beginning when the investment is made, and
(b) ending immediately before the qualifying date relating to the accounting period.
(2) No claim may be made for an accounting period if before the qualifying date relating to that period paragraphs (a) to (d) of section 247(1) (receipts of value in the 6 year period exceeding permitted limits) apply in relation to the investment or any part of it.
(3) For the purposes of this section the qualifying date relating to an accounting period is the next anniversary of the investment date to occur after the end of that period.
238 No claim after loss of accreditation by the CDFI
(1) If the CDFI ceases to be accredited under Chapter 2 of Part 7 of ITA 2007 with effect from a time within the 5 year period, no claim in respect of the investment may be made—
(a) for the relevant accounting period, or
(b) for any later accounting period.
(2) To find the relevant accounting period proceed under the rest of this section, in which references to the time of accreditation ceasing are to the time with effect from which the CDFI ceases to be accredited.
(3) If the time of accreditation ceasing falls within the first year of the 5 year period, the relevant accounting period is the accounting period in which the investment date fell.
(4) In any other case the relevant accounting period is—
(a) the accounting period in which the last anniversary of the investment date before the time of accreditation ceasing fell, or
(b) if the time of accreditation ceasing itself falls on an anniversary of the investment date, the accounting period in which that anniversary falls.
(1) This section applies where the investor becomes accredited under Chapter 2 of Part 7 of ITA 2007 with effect from a time within the 5 year period.
(2) No claim in respect of the investment may be made—
(a) for the relevant accounting period, or
(b) for any later accounting period.
(3) To find the relevant accounting period proceed under the rest of this section, in which references to the time of accreditation are to the time with effect from which the investor becomes accredited.
(4) If the time of accreditation falls within the first year of the 5 year period, the relevant accounting period is the accounting period in which the investment date fell.
(5) In any other case the relevant accounting period is—
(a) the accounting period in which the last anniversary of the investment date before the time of accreditation fell, or
(b) if the time of accreditation itself falls on an anniversary of the investment date, the accounting period in which that anniversary falls.
(1) In this Part references to the CITR attributable to any loan, securities or shares in respect of an accounting period are read as references to the reduction which—
(a) is made in the investor's liability to corporation tax for that period, and
(b) is attributed to that loan, or those securities or shares, in accordance with this section and section 241.
This is subject to the provisions of Chapter 5 for the withdrawal or reduction of CITR.
(2) Subsections (3) and (4) apply if the investor's liability to corporation tax is reduced for an accounting period under this Part.
(3) If the reduction is obtained because of one loan, or securities or shares included in one issue, the amount of the tax reduction is attributed to that loan or those securities or shares.
(4) If the reduction is obtained because of a loan or loans, securities or shares included in two or more investments, the reduction—
(a) is apportioned between the loan or loans, securities or shares in each of those investments in the same proportions as the invested amounts in respect of the loan or loans, securities or shares for the period, and
(b) is attributed to that loan or those loans, securities or shares accordingly.
(4A) In the case of CITR under section 220A, in subsection (4)(a) the reference to the period is to be read as a reference to the period mentioned in section 220A(1)(a).
(5) If under this section an amount of any reduction of corporation tax is attributed to any securities in the same issue, a proportionate part of that amount is attributed to each security.
(6) If under this section an amount of any reduction of corporation tax is attributed to any shares in the same issue, a proportionate part of that amount is attributed to each of those shares.
(7) If CITR attributable to a loan or any securities or shares falls to be withdrawn under Chapter 5, the CITR attributable to that loan or each of those securities or shares is reduced to nil.
(8) If CITR attributable to any securities or shares falls to be reduced under that Chapter by any amount, the CITR attributable to each of those securities or shares is reduced by a proportionate part of that amount.
(1) This section applies if—
(a) corresponding bonus shares are issued to the investor in respect of any shares (“the original shares”) included in the investment, and
(b) the original shares have been continuously held by the investor, as sole beneficial owner, from the time they were issued until the issue of the bonus shares.
(2) A proportionate part of any amount attributed to the original shares, in respect of an accounting period, immediately before the bonus shares are issued is attributed to each of the shares in the holding consisting of the original shares and the bonus shares, in respect of that period.
(3) After the issue of the bonus shares this Part applies as if—
(a) the original issue had included the bonus shares, and
(b) the bonus shares had been held by the investor, as sole beneficial owner, continuously from the time the original shares were issued until the bonus shares were issued.
(4) In this section—
“corresponding bonus shares” means bonus shares that are in the same company, are of the same class, and carry the same rights as the original shares,
“original issue” means the issue of shares forming the investment.
(1) This Chapter provides for CITR to be withdrawn or reduced under—
(a) section 243 (disposal of loan during 5 year period),
(b) section 244 (disposal of securities or shares during 5 year period),
(c) section 245 (repayment of loan capital during 5 year period),
(d) section 246 (value received by investor during 6 year period: loans),
(e) section 247 (value received by investor during 6 year period: securities or shares),
(f) section 254 (CITR subsequently found not to have been due).
(2) This Chapter also provides for the manner in which CITR is to be withdrawn or reduced (see section 255).
(3) In this Chapter “the 6 year period” in relation to the investment is the period of 6 years beginning 12 months before the investment date.