C1Part 7Community investment tax relief
Chapter 6Withdrawal or reduction of CITR
Disposals
360Disposal of loan during 5 year period
1
If the investment consists of a loan and within the 5 year period—
a
the investor disposes of the whole of the investment, otherwise than by way of a permitted disposal, or
b
the investor disposes of a part of the investment,
any CITR attributable to the investment in respect of any tax year must be withdrawn.
2
For the purposes of this section—
a
a disposal is “permitted” if—
i
it is by way of a distribution in the course of dissolving or winding up the CDFI,
ii
it is a disposal within section 24(1) of TCGA 1992 (entire loss, destruction, dissipation or extinction of asset),
iii
it is a deemed disposal under section 24(2) of that Act (claim that value of asset has become negligible), or
iv
it is made after the CDFI has ceased to be accredited under this Part, and
b
a full or partial repayment of the loan is not treated as giving rise to a disposal.
Pt. 7 modified by 2005 c. 7, s. 54A (as inserted (10.7.2008) by The Alternative Finance Arrangements (Community Investment Tax Relief) Order 2008 (S.I. 2008/1821), arts. 1, 2)