Corporation Tax Act 2010 section 232

Investor must have beneficial ownership

Section 232 requires that the investor must be the sole beneficial owner of the investment at the time it is made, in order to qualify for community investment tax relief (CITR).

• The investor must be the sole beneficial owner of the investment at the point the investment is made.
• For loan investments, the person entitled to receive repayment of the loan is treated as the beneficial owner of the loan.
• Joint investors and trustees are excluded from claiming CITR under this requirement.
• A separate provision (section 262) allows investments to be made through a nominee or bare trustee acting on behalf of a company.