Corporation Tax Act 2010 section 249

When value is received

Section 249 defines the circumstances in which an investor is treated as receiving value from a Community Development Finance Institution (CDFI), which can affect the investor's entitlement to tax relief under this Chapter.

• An investor receives value from the CDFI when the CDFI repays, redeems or repurchases investment securities or shares, releases liabilities, makes loans, provides benefits or facilities, transacts assets at off-market prices, or makes non-qualifying payments to the investor.
• If the investor is a bank, routine deposits made by the CDFI with the bank in the ordinary course of banking do not count as receiving value.
• A liability not discharged within 12 months of when it should have been is treated as having been released or waived, and debts owed by the investor to the CDFI (other than ordinary trade debts) or debts assigned to the CDFI are treated as loans from the CDFI to the investor.
• Qualifying payments — such as reasonable payments for goods or services, fair commercial interest, normal dividends, market-value asset purchases, reasonable rent, and ordinary trade debt settlements — are excluded from the definition of receiving value.