SolvedCITM7110 | Withdrawal of relief: When value is received
From HM Revenue & Customs · Community investment tax relief manual
CTA2010/Part 7/Chapter 5/S249; CTA2010/Part 7/Chapter 5/S250; ITA/s366; ITA/s367
The table below shows when value is received (CITM7060) for the purposes of the CITR scheme and how the amount of such value is established or calculated.
| Circumstances in which value received | Amount of value received | Notes |
|---|---|---|
| Repayment, redemption or repurchase of any securities or shares included in the investment | Amount received by the investor | Such receipts are only treated as value received for the purposes of the investment to which the receipt relates, other investments are not affected. |
| Release or waiver of any liability of the investor, or discharge or undertaking to discharge of any liability of the investor to another person | Amount received by the investor | A liability is treated as waived or released if it is not discharged within 12 months of the time it ought to have been discharged. |
| Making of a loan or advance to the investor that has not been fully repaid before the investment is made | Amount of the loan less any amount repaid before the investment is made | The following amounts are treated as loans made by the CDFI to the investor: - debts incurred by the investor to the CDFI (other than ordinary trade debts), - any debts due from the investor to a third person that are assigned to the CDFI |
| Provision of a benefit or facility to the: - investor, - associate of the investor, - directors or employees of corporate investors, or any associates of those directors or employees | Cost of providing the benefit or facility less any consideration given for it by the investor or any associate of the investor | For meaning of “associate” see CITM9010 |
| Disposal of an asset to the investor for less than market value | The difference between the market value of the asset and any consideration given for it | “Market value” means the price that the asset might reasonably be expected to fetch on sale at that time in the open market (free from any interest or right which exists by way of security over it) - CTA2010/S269 (3) |
| Acquisition of an asset from the director at more than market value | The difference between the market value of the asset and any consideration received for it | “Market value” means the price that the asset might reasonably be expected to fetch on sale at that time in the open market (free from any interest or right which exists by way of security over it) - CTA2010/S269 (3) |
| Making of a payment to the investor that is not a qualifying payment | The amount of the payment | For meaning of qualifying payment see CITM7120 |