Any community investment tax relief (that has been given in relation to an investment consisting of a loan) may be withdrawn if more of that loan is required to repaid, or it is required to be repaid more quickly, than a loan satisfying the repayment conditions for qualifying loans (set out in condition C in E3.611).
The relief is withdrawn if the average capital balance of the loan for the third, fourth or fifth year is less than the permitted balance for the year in question, unless that difference is an insignificant amount1.
Average capital balance
The average capital balance is the mean daily balances of capital outstanding during the period in question, ignoring any non-standard repayments of the loan made in that period or at any earlier time2. A repayment of the loan is a non-standard repayment if it is made:
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