Income Tax Act 2007 section 366

When value is received

Section 366 defines the circumstances in which an investor is treated as having received value from a Community Development Finance Institution (CDFI), which can affect the investor's entitlement to tax relief under this chapter.

• Value is received when the CDFI repays, redeems or repurchases the investor's securities or shares, releases or waives the investor's liabilities, provides loans or advances, supplies benefits or facilities, transacts assets at off-market prices, or makes non-qualifying payments to the investor
• A liability not discharged within 12 months of its due date is treated as released or waived, and debts owed by the investor to the CDFI (other than ordinary trade debts) or debts assigned to the CDFI from third parties are treated as loans from the CDFI
• Transactions that would count as qualifying payments — such as payments at market value for goods, services or assets, reasonable commercial interest, normal investment returns, commercial rent and ordinary trade debts — are excluded from the definition of receiving value
• References to a person include anyone connected with that person at any time during the six-year period, and payments or disposals made indirectly or for a person's benefit are caught by these rules