Section 348 | Tax relief certificates

From legislation.gov.uk

16 September 2026

(1)A “tax relief certificate” means a certificate issued by the CDFI in respect of the investment which is in the form specified by the Commissioners for Her Majesty's Revenue and Customs.

(2)The CDFI must not issue tax relief certificates under this section in respect of investments made in the CDFI in an accreditation period if the total value of—

(a)those investments, and

(b)any investments to which subsection (3) applies,

will exceed the limit for that period.

(3)This subsection applies to investments ...—^F1

(a)which have been made in the CDFI in the accreditation period, and^F2

(b)in respect of which the CDFI has issued tax relief certificates under section 229 of CTA 2010 (which makes in relation to corporation tax provision corresponding to that made by this section).^F3

(4)The limit for an accreditation period is—

(a)£25 million if the CDFI is accredited for the period as a retail community development finance institution (see section 340(8)), and^F4

(b)£100 million in any other case.^F5

(5)For the purposes of subsection (2) the value of an investment made in the CDFI is—

(a)if the investment consists of a loan—

(i)the amount of the loan, or

(ii)if the loan agreement authorises the CDFI to draw down amounts of the loan over a period of time, the amount committed under the loan agreement, and

(b)if the investment consists of securities or shares, the amount subscribed for them.

(6)The Treasury may by order substitute any other amount for any amount for the time being specified in subsection (4).

(7)Any such substitution is to have effect in relation to such accreditation periods as may be specified in the order; and those periods may, if the substitution increases an amount for the time being specified in subsection (4), include periods beginning before the order comes into force.^F6F7

(8)Any tax relief certificate issued in contravention of subsection (2) is invalid.

(9)A body is liable to a penalty of not more than £3,000 if it issues a tax relief certificate which is made fraudulently or negligently.

Notes

F1
Word in s. 348(3) repealed (with effect in accordance with s. 1184(1) of the amending Act) by Corporation Tax Act 2010 (c. 4), s. 1184(1), Sch. 1 para. 511(2)(a), Sch. 3 Pt. 1 (with Sch. 2)
F2
Word in s. 348(3)(a) inserted (with effect in accordance with s. 1184(1) of the amending Act) by Corporation Tax Act 2010 (c. 4), s. 1184(1), Sch. 1 para. 511(2)(b) (with Sch. 2)
F3
Words in s. 348(3)(b) substituted (with effect in accordance with s. 1184(1) of the amending Act) by Corporation Tax Act 2010 (c. 4), s. 1184(1), Sch. 1 para. 511(2)(c) (with Sch. 2)
F4
Sum in s. 348(4)(a) substituted (with effect in relation to accreditation periods ending on or after 1.6.2023) by The Community Investment Tax Relief (Amendment of Investment Limits) Regulations 2023 (S.I. 2023/518), regs. 1, 2(a)
F5
Sum in s. 348(4)(b) substituted (with effect in relation to accreditation periods ending on or after 1.6.2023) by The Community Investment Tax Relief (Amendment of Investment Limits) Regulations 2023 (S.I. 2023/518), regs. 1, 2(b)
F6
Words in s. 348(7) substituted (with effect in accordance with s. 1184(1) of the amending Act) by Corporation Tax Act 2010 (c. 4), s. 1184(1), Sch. 1 para. 511(3)(a) (with Sch. 2)
F7
Words in s. 348(7) substituted (with effect in accordance with s. 1184(1) of the amending Act) by Corporation Tax Act 2010 (c. 4), s. 1184(1), Sch. 1 para. 511(3)(b) (with Sch. 2)