Income Tax Act 2007 section 369

Effect of receipt of value on future claims for CITR

Section 369 deals with how receiving value from a CDFI affects future Community Investment Tax Relief (CITR) claims where the investor holds securities or shares and the receipt does not trigger a full withdrawal of relief.

• Where an investor receives non-insignificant value from the CDFI during the six-year period but the CITR is not withdrawn under section 364, the amount subscribed for the continuing investment is reduced by the value received for the purpose of calculating future CITR
• The reduction applies for any tax year ending on or after the anniversary of the investment date immediately before the value was received, or on or after that anniversary if value was received on the anniversary itself
• An amount of value is treated as insignificant if it is no more than £1,000, or if it exceeds £1,000 but is insignificant relative to the amount the investor subscribed for the securities or shares in the continuing investment
• Where there is more than one investment, section 368 may modify how this section operates