Income Tax Act 2007 section 368

Value received if there is more than one investment

Section 368 deals with how value received by an investor is apportioned across multiple investments in a Community Development Finance Institution (CDFI) when that value falls within the six-year periods of more than one investment.

• Where an investor has made two or more CDFI investments attracting CITR and receives value falling within the six-year periods of more than one of those investments, the value must be apportioned among the relevant investments
• The apportionment uses a fraction (A divided by B), where A is the appropriate amount for the investment in question and B is the total of the appropriate amounts for all the affected investments
• For loan investments, the appropriate amount is generally the average capital balance of the loan for the year in which the value is received (or the second year's balance if value is received in the first or second year)
• For securities or shares, the appropriate amount is the subscription price of those securities or shares still held continuously by the investor as sole beneficial owner since the investment was made (or the full subscription price if value is received in the first year)