Income Tax Act 2007 section 348

Tax relief certificates

Section 348 governs the issuing of tax relief certificates by Community Development Finance Institutions (CDFIs) and sets limits on the total value of investments for which certificates may be issued in any accreditation period.

• A tax relief certificate is a document issued by a CDFI in a form specified by HMRC, and without one an investor cannot claim Community Investment Tax Relief
• The total value of investments for which certificates are issued in an accreditation period must not exceed £25 million for retail CDFIs or £100 million for all other CDFIs, counting both individual and corporate investments together
• The value of a loan investment is the loan amount (or the committed amount under a drawdown arrangement), while for securities or shares it is the amount subscribed
• Any certificate issued in breach of the investment limit is invalid, and a body that issues a certificate fraudulently or negligently is liable to a penalty of up to £3,000