Section 335 — Income Tax Act 2007: Form and amount of CITR

Form and amount of CITR 335 1 If the investor is eligible for CITR in respect of the investment, the investor may make a claim in respect of the investment for any one or more of the relevant tax years.

2 If the investor makes a claim for a relevant tax year, the investor is entitled to a tax reduction for that year of 5% of the invested amount in respect of the investment for the year.

3 For the purposes of this section and section 335A the “relevant” tax years are—

a the tax year in which the investment date falls, and b each of the 4 subsequent tax years.

4 The tax reduction is given effect at Step 6 of the calculation in section 23.

5 The investor is entitled to make a claim for CITR for a relevant tax year if—

a the investor considers that the conditions for the CITR are for the time being met, and b the investor has received a tax relief certificate (see section 348) relating to the investment from the CDFI, but no claim may be made before the end of the tax year to which it relates.

6 Subsection (5) is subject to the following provisions—

a section 354 (loans: no claim after disposal or excessive repayments or receipts of value),

b section 355 (securities or shares: no claim after disposal or excessive receipts of value),

and c section 356 (no claim after loss of accreditation by CDFI).