Introduction Overview Overview Section 244: Disposal of securities or shares during 5 year period
871.This section provides for the withdrawal or reduction of CITR attributable to securities or shares, if the investor disposes of the whole or part of the investment in the securities or shares (except upon repayment, redemption or repurchase by the CDFI) within the 5 year period and the CDFI is accredited at the time of the disposal. It is based on paragraph 29 of Schedule 16 to FA 2002.
872.Subsections (2) and (3) provide for different consequences depending upon whether the disposal is a qualifying disposal.
873.Subsection (4) defines what is a qualifying disposal. It is based on paragraph 29(4) of Schedule 16 to FA 2002 with the omission of the words “for full consideration” in paragraph(a). See Change 11in Annex 1.
874.There is inconsistency of language between paragraph 29(3) and (5) of Schedule 16 to FA 2002 which refer to CITR being attributable foran or any accounting period and paragraph 26(1)(b) of that Schedule (rewritten in section 240(1)) which defines references in that Schedule to “CITR attributable ... in respect of an accounting period”. This section removes this inconsistency by substituting “in respect of” in subsections (3) and (5).
875.Subsection (5)provides for circumstances where 5% of the invested amount is greater than the corporation tax liability of the investor for the accounting period.