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Community investment tax relief—introduction

E3.601 Community investment tax relief (CITR)—overview

The community investment tax relief ('CITR') regime is intended to promote investment in businesses and social enterprises in disadvantaged areas. The regime was introduced following recommendations from the Social Investment Task Force in October 2000. The original proposals were subject to a consultation process, and the rules were enacted in FA 2002, Sch 16 and rewritten into ITA 2007, ss 333–382 (Pt 7) (for income tax purposes) and into CTA 2010, ss 218–269 (Pt 7) (for corporation tax purposes).

CITR is a European notified State aid which had clearance until October 2012. The 2011 Budget contained an announcement that re-notification to the European Commission would be undertaken to ensure the continuance of the scheme¹. Following discussions with the EC it was decided to bring the aid within the de minimis rules from 1 April 2013, see E3.636².

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