Corporation Tax Act 2010 section 242

Introduction to Chapter

Section 242 introduces the chapter dealing with the circumstances under which Community Investment Tax Relief (CITR) may be withdrawn or reduced, and defines the key "6 year period" used in the receipt-of-value provisions.

• CITR can be withdrawn or reduced if the investor disposes of the loan, securities or shares, or receives repayment of loan capital, within the five-year period beginning on the investment date.
• CITR can also be withdrawn or reduced where the investor receives value from the body in which the investment was made during a six-year period — defined as starting 12 months before the investment date — whether the investment took the form of a loan, securities or shares.
• If CITR is subsequently found not to have been due at all, it will be withdrawn accordingly.
• The chapter also sets out the mechanics of how any withdrawal or reduction of CITR is carried out in practice.