Income Tax Act 2007 section 372

Manner of withdrawal or reduction of CITR

Section 372 sets out the mechanism by which community investment tax relief (CITR) is withdrawn or reduced when circumstances require it, including time limits and restrictions on assessments.

• Where CITR needs to be withdrawn or reduced, HMRC does so by raising an income tax assessment for the tax year in which the relief was originally obtained
• No assessment to withdraw or reduce CITR may be made in respect of any event that occurs after the investor has died
• The time limit for making such an assessment is six years from the end of the tax year for which the relief was obtained
• The six-year time limit does not override the extended time limits that apply where tax loss has been brought about deliberately