Corporation Tax Act 2010 section 252

Effect of receipt of value on future claims

Section 252 deals with how receiving value from a CDFI affects future Community Investment Tax Relief (CITR) claims where the amount received is below the threshold that would trigger a full withdrawal of relief, but is not insignificant.

• Where an investor in securities or shares receives value from the CDFI during the 6-year period, but the amount is below the level that would trigger withdrawal of CITR under the main rules, the amount on which future CITR is calculated is reduced by the value received.
• The reduction applies to accounting periods ending on or after the anniversary of the investment date immediately before the value was received (or on or after that anniversary, if the value was received on an anniversary date).
• Amounts of "insignificant value" are excluded — meaning amounts of £1,000 or less, or amounts that, even if over £1,000, are insignificant relative to the total amount subscribed for the continuing investment.
• This section is subject to the rules in section 251, which modify its effect where the investor has made more than one investment in the same CDFI.

---