Income Tax Act 2007 section 335A

Carry forward of CITR

Section 335A allows investors to carry forward unused community investment tax relief (CITR) to later tax years in which they remain entitled to relief in respect of the same investment.

• Where a CITR tax reduction cannot be fully used against the investor's income tax liability in the year it arises, the unused portion (the "excess amount") may be carried forward.
• The carry forward is available for each subsequent qualifying tax year, provided the investor is still entitled to CITR under section 335 for that investment and makes a claim.
• The amount carried forward and available in any later year is limited to whatever part of the original excess has not already been used in an earlier year.
• Both the original relief and the carried-forward relief operate at Step 6 of the income tax calculation in section 23, which is where tax reductions are set against the tax otherwise due.