CITM4060 - Qualifying investments: Issue of tax relief certificates
SI2003/96 Regulation 14; CTA2010/Part 7/Chapter 2/S229; ITA/s348
A community development finance institution (CDFI) must issue a tax relief certificate within thirty days of receiving an investment from an individual, a company or another CDFI.
»Ê¹ÚÌåÓýapp form of the tax relief certificates is specified by the Commissioners for HM Revenue & Customs. It can be accessed via the HMRC website at GOV.UK .
Any body that issues tax relief certificates on a fraudulent or negligent basis is liable to a maximum fine of £3,000.
Loans with drawdown facilities
Where the qualifying investment is a loan whose terms provide for amounts to be drawn down over a period of time (see CITM4020) the tax relief certificate must be issued within thirty days of the date on which the first amount is drawn down.
»Ê¹ÚÌåÓýapp amount of the investment to be reflected on the certificate is the total amount committed under the loan agreement. »Ê¹ÚÌåÓýapp certificate includes a check box that indicates whether the investment is a loan with a drawdown facility.
Subsequent drawdowns made under the terms of the same loan agreement do not necessitate the issue of further certificates.