Section 360 — Income Tax Act 2007: Disposal of loan during 5 year period

Disposal of loan during 5 year period 360 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disposes of a part of the investment, any CITR attributable to the investment in respect of any tax year must be withdrawn.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.