Income Tax Act 2007 section 347

Conditions to be met in relation to shares

Section 347 sets out the two conditions that shares must satisfy for the purposes of community investment tax relief.

• Shares must be subscribed for wholly in cash and fully paid up by the investment date
• Shares must not carry any present or future right to be redeemed during the 5-year period
• Shares must not be convertible or exchangeable for any redeemable loan, securities or other rights within the 5-year period
• Shares are not treated as fully paid up if there is any undertaking to pay cash to the CDFI at a future date in connection with acquiring them