Income Tax Act 2007 section 338

Meaning of "the 5 year period" and "the investment date"

Section 338 defines two key terms — "the 5 year period" and "the investment date" — used throughout this Part of the Act in connection with community investment tax relief.

  • The "investment date" is simply the day on which the investment is made.
  • The "5 year period" is the five-year window that starts on the investment date.
  • During the 5 year period, conditions relating to the repayment or redemption of the investment must be met.
  • These definitions underpin several other provisions that impose requirements on investors and community development finance institutions throughout the five years.

Example

Rachel makes a qualifying investment in a community development finance institution on 15 March 2024. The investment date is therefore 15 March 2024, and the 5 year period runs from 15 March 2024 to 14 March 2029. Throughout that five-year window, the various conditions attached to the investment — including restrictions on repayment and redemption — must continue to be met for Rachel to retain her community investment tax relief.

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