Income Tax Act 2007 section 380

Construction of references to being "held continuously"

Section 380 explains how to determine whether an investor has held a community investment continuously throughout a required period, which is relevant to qualifying for and retaining community investment tax relief.

• Several provisions in the community investment tax relief rules require the investor to have held the investment continuously for a specified period
• A deemed disposal and immediate reacquisition under any provision of the Taxation of Chargeable Gains Act 1992 breaks the continuity of holding
• A deemed disposal under section 379(2) — which treats certain events as disposals for community investment tax relief purposes — also breaks continuity
• If continuity is broken, the investor may lose entitlement to tax relief or face a requirement to repay relief already claimed