Income Tax Act 2007 section 351

Investor must have beneficial ownership

Section 351 requires that the investor must be the sole beneficial owner of the investment to qualify for Community Investment Tax Relief (CITR).

• The investor must be the sole beneficial owner of the investment at the time it is made.
• Where the investment is a loan, the person entitled to repayment is treated as the beneficial owner of that loan.
• Joint investors and trustees are excluded from claiming CITR under this requirement.
• An exception exists under section 375, which allows investments to be made through a nominee or bare trustee on behalf of an individual.