Income Tax Act 2007 section 336

Meaning of "making an investment"

Section 336 defines what counts as "making an investment" in a community development finance institution (CDFI) for the purposes of the community investment tax relief rules.

• An individual makes an investment when they make a loan (secured or unsecured) to the body, or when securities or shares they have subscribed for are issued to them.
• Providing overdraft facilities to the body does not count as making a loan, nor does subscribing for or otherwise acquiring the body's securities.
• Where a loan agreement allows the body to draw down amounts over time, the loan is treated as made at the point the first amount is drawn down.
• These definitions determine whether an individual qualifies as having made an investment for the purpose of claiming community investment tax relief.