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Home / Simons-Taxes /Personal and employment tax /Part E3 Reliefs for investors /Division E3.6 Community investment tax relief /Withdrawal of relief / E3.645 Receipts of value where investment consists of a loan
Commentary

E3.645 Receipts of value where investment consists of a loan

Personal and employment tax

Where the investment is a qualifying loan, any value other than insignificant value is received by the investor, or any connected person, during the six-year period or period of restriction (see E3.644), a repayment of the loan is deemed to be made equal to the amount of value received. This may have consequences both for determining the amount of the invested amount (see E3.637) and under the rules that withdraw relief on repayments of excessive loan capital (see E3.643)1.

A repayment of the loan is deemed to be made where the value was received:

  1. Ìý

    (a)ÌýÌýÌýÌý in the first or second year of the six-year period or period of restriction, at the beginning of that second year; and

  2. Ìý

    (b)

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