Corporation Tax Act 2010 section 236

Loans: no claim after disposal or excessive repayments or receipts of value

Section 236 prevents a community investment tax relief (CITR) claim being made for a particular accounting period where the investment is a loan and certain disqualifying events have occurred before the relevant qualifying date.

• No claim may be made if the investor disposes of all or part of the loan before the qualifying date for that accounting period (though normal loan repayments are ignored when determining whether a disposal has occurred).
• No claim may be made if, after the investment is made but before the qualifying date, the outstanding capital on the loan has been reduced to nil.
• No claim may be made if, before the qualifying date, loan repayments within the five-year period have exceeded the permitted limits under section 245(1), whether those repayments arise from actual repayments or from receipts of value treated as repayments under section 246.
• The qualifying date for any accounting period is the next anniversary of the original investment date that falls after the end of that accounting period.