Income Tax Act 2007 section 257KB

When investment is made, and "investment date"

Section 257KB defines when a social investment is treated as being "made" for the purposes of social investment tax relief, which determines the tax year in which relief can be claimed.

• The "investment date" is the date on which the investment is treated as made, and this determines the tax year for which relief is available.
• For share investments, the investment is made when the social enterprise issues the shares to the investor.
• For qualifying debt investments, the investment date depends on whether there is a single advance or multiple advances under the debenture, and whether or not the debenture is formally issued.
• For second or subsequent advances under the same debenture, the investment is made when the cash is fully advanced, or if later, when the debenture is issued or takes effect.