Corporation Tax Act 2010 section 225

Qualifying investments: introduction

Section 225 defines what counts as a "qualifying investment" in a Community Development Finance Institution (CDFI) for the purposes of community investment tax relief.

• A qualifying investment must take the form of a loan, securities, or shares in the CDFI, each of which must meet specific conditions set out in the legislation.
• The investor must receive a valid tax relief certificate from the CDFI in respect of the investment.
• There must be no pre-arranged protection against the risks of making the investment.
• All three requirements — the correct form of investment, a valid certificate, and no risk protection arrangements — must be satisfied for the investment to qualify.