Income Tax Act 2007 section 355

Securities or shares: no claim after disposal or excessive receipts of value

Section 355 sets out two conditions that must be met before an investor who has subscribed for securities or shares can claim Community Investment Tax Relief (CITR) for any given tax year.

• The investor must have held the securities or shares continuously as sole beneficial owner from the date of investment until just before the qualifying date for the relevant tax year.
• If the investor has disposed of any of the securities or shares before the qualifying date, no CITR claim can be made for that tax year.
• No claim is allowed if the investor has received (or is treated as having received) value from the CDFI that exceeds the permitted limits under section 364, at any point before the qualifying date.
• The qualifying date for a tax year is the next anniversary of the original investment date that falls after the end of that tax year.