Income Tax Act 2007 section 359

Overview of Chapter

Section 359 provides an overview of the circumstances in which Community Investment Tax Relief (CITR) can be withdrawn or reduced, and defines the key time period relevant to those provisions.

• CITR may be withdrawn or reduced if the investor disposes of a loan, securities or shares within the five-year period, or if loan capital is repaid within that period.
• CITR may also be withdrawn or reduced if the investor receives value during a longer six-year period, whether the investment was made by way of loan or by way of securities or shares.
• The six-year period runs from 12 months before the investment date, meaning receipts of value in the year before the investment are also caught as an anti-avoidance measure.
• CITR will also be withdrawn if it is subsequently found not to have been due, and separate rules govern the mechanics of how any withdrawal or reduction is carried out.