Income Tax Act 2007 section 335

Form and amount of CITR

Section 335 sets out the form and amount of Community Investment Tax Relief (CITR), specifying the rate of tax reduction available and the tax years for which an eligible investor may claim it.

• An eligible investor may claim a tax reduction of 5% of the invested amount for each relevant tax year
• The relevant tax years are the year the investment is made plus the following four tax years, giving a potential total relief of 25% over five years
• A claim cannot be made until the end of the tax year to which it relates, and the investor must hold a tax relief certificate from the CDFI
• Claims are blocked where there has been a disposal, excessive repayment or receipt of value, or where the CDFI has lost its accreditation