Income Tax Act 2007 section 350

No control of CDFI by investor

Section 350 sets out the requirement that an investor (or anyone connected with the investor) must not control the Community Development Finance Institution (CDFI) at any point during the five-year period, in order to qualify for Community Investment Tax Relief (CITR).

• The investor, including any person connected with the investor, must not control the CDFI at any time during the five-year period following the investment
• Where the CDFI is a body corporate, control is determined in accordance with the general definition in section 995 of the Income Tax Act 2007
• Where the CDFI takes another form (such as a partnership or unincorporated association), control exists if the investor can ensure the CDFI's affairs are conducted in accordance with their wishes through voting power or constitutional powers
• Any rights or powers the investor is entitled to acquire in future, or that another person holds or exercises on the investor's behalf, are attributed to the investor when assessing control