Corporation Tax Act 2010 section 231

No control of CDFI by investor

Section 231 sets out the rule that an investor (or a person connected with the investor) must not control the Community Development Finance Institution (CDFI) at any time during the five-year period in order to qualify for Community Investment Tax Relief (CITR).

• The investor, including any person connected with the investor, must not control the CDFI at any time during the five-year period following the investment.
• Where the CDFI is a body corporate, control is determined in accordance with section 1124 of the Corporation Tax Act 2010; for other types of CDFI (such as partnerships or unincorporated associations), control exists where the investor can direct the affairs of the body through voting power or constitutional powers.
• Where the CDFI is a partnership and the investor is a member, the other partners are not treated as partners of the investor solely because of their membership of the CDFI when assessing whether the investor has control.
• Any rights or powers the investor is entitled to acquire in the future, or that another person holds or may exercise on the investor's behalf, are attributed to the investor when determining control.