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CITM2100 | Accreditation of community development finance institutions (CDFIs): Withdrawal of accreditation

From HM Revenue & Customs · Community investment tax relief manual

ITA/s341; SI2003/96 Regulation 15

Accreditation of a body as a CDFI is made under terms defined in regulations and such other terms as the Secretary of State considers appropriate.

Accreditation is conditional. The CDFI must comply with requirements laid down in regulations or imposed by the Secretary of State.

Accreditation is withdrawn if the CDFI

  • fails to invest specified proportions of its investment fund within the time limits set out in SI2003/96 Regulation 8 (see CITM2110 & CITM3005),

or

  • invests, directly or indirectly, in residential property (see CITM2120).

The withdrawal of accreditation must be notified in writing by the Department for Business and Trade (DBT) and must specify the date from which accreditation is withdrawn and the reasons for the withdrawal.

Unavoidable breaches of onward investment requirement

Generally accreditation must be withdrawn from any CDFI that fails to meet the onward investment requirement. But there is an exception for CDFIs whose failure is outside their control and who have acted reasonably in their attempts to avoid the failure and mitigate its extent (CITM2110).