Corporation Tax Act 2010 section 220

Form and amount of CITR

Section 220 sets out how Community Investment Tax Relief (CITR) is calculated, the accounting periods over which it can be claimed, and the conditions that must be satisfied before a claim is made.

• An eligible investor may claim a corporation tax reduction equal to 5% of the invested amount for each relevant accounting period, giving a maximum total relief of 25% over five years.
• The relevant accounting periods are the one in which the investment date falls and those in which the next four anniversaries of that date fall — five periods in total.
• A claim requires that the investor believes the CITR conditions are met, has received a tax relief certificate from the Community Development Finance Institution (CDFI), and does not submit the claim before the end of the accounting period to which it relates.
• Claims are restricted by further rules covering disposal of loans, shares or securities, excessive repayments or receipts of value, loss of CDFI accreditation, and accreditation of the investor itself.