Corporation Tax Act 2010 section 254

CITR subsequently found not to have been due

Section 254 provides for the withdrawal of community investment tax relief (CITR) where that relief is subsequently found not to have been due.

• If any CITR has been obtained but is later found not to have been due, it must be withdrawn.
• This section provides the legal basis for HMRC to make an assessment to recover the relief under section 255.
• The provision applies where a claim for a tax reduction has been incorrectly allowed.
• Withdrawal is mandatory once it is established that the relief was not due — there is no discretion involved.