Income Tax Act 2007 section 356

No claim after loss of accreditation by the CDFI

Section 356 prevents an investor from claiming Community Investment Tax Relief (CITR) for certain tax years if the Community Development Finance Institution (CDFI) loses its accreditation during the five-year investment period.

• If a CDFI loses its accreditation at any point within the five-year period, the investor cannot claim CITR for the relevant tax year or any later tax year
• If accreditation is lost during the first year of the five-year period, the relevant tax year is the year in which the original investment date fell
• If accreditation is lost after the first year, the relevant tax year is determined by reference to the last anniversary of the investment date before accreditation ceased
• If accreditation ceases exactly on an anniversary of the investment date, that anniversary's tax year is the relevant tax year