Income Tax Act 2007 section 371

CITR subsequently found not to have been due

Section 371 deals with what happens when a community investment tax relief (CITR) has been claimed and allowed but is later found not to have been due.

• If a CITR has been obtained but is later found not to have been due, it must be withdrawn
• This applies regardless of the reason why the relief was not due
• The withdrawal provides the basis for HMRC to make an assessment under section 372 to recover the relief
• The requirement to withdraw the relief is mandatory — there is no discretion involved