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E3.635 The community investment tax relief available for individual investors

A qualifying investor who is an individual must claim relief under the CITR scheme. As to the conditions for, and the mechanics of, making the claim, see E3.630.

Where an individual investor makes a claim relating to a qualifying investment for a relevant tax year, the relief takes the form of a reduction in the amount of his income tax liability for that tax year. For each relevant year this reduction is the smaller of:

1. Ìý

   (a)ÌýÌýÌýÌý 5% of the CITR invested amount for the year; or

2. Ìý

   (b)ÌýÌýÌýÌý the amount which reduces his income tax liability for the year to nil¹

In relation to investments made after 5 April 2013, any unused relief may be carried forward so long as the investor remains eligible for relief². It may not, however, be carried forward beyond the relevant tax years. In this context, the 'relevant'