Corporation Tax Act 2010 section 229

Tax relief certificates

Section 229 sets out the rules governing the issue of tax relief certificates by Community Development Finance Institutions (CDFIs), including the investment limits that apply during each accreditation period and the consequences of breaching those limits.

• A CDFI must not issue tax relief certificates if the total value of investments in an accreditation period would exceed £10 million for retail CDFIs or £20 million for all other CDFIs, counting both corporation tax and income tax investments together.
• The value of a loan investment is the loan amount (or the committed amount if the loan is drawn down over time), and the value of securities or shares is the amount subscribed for them.
• The Treasury may change these limits by order, and if a limit is increased, the change can apply retrospectively to accreditation periods that began before the order came into force.
• Any tax relief certificate issued in breach of the investment limits is invalid, and a CDFI that issues a certificate fraudulently or negligently is liable to a penalty of up to £3,000.