CITM4010 - Qualifying Investments: Meaning of 'qualifying investment'

FA02/SCH16/PARA8; ITA/s344; FA05/S54A

Relief under the CITR scheme is only available in respect of ‘qualifying investments’ in Community Development Finance Institutions (CDFIs).

An investment is a qualifying investment if –


  • the investment consists of:
  • a loan that satisfies the conditions of FA02/SCH16/PARA9 & ITA/s345( CITM4020), or
  • securities that satisfy the conditions of FA02/SCH16/PARA10 & ITA/s346 ( CITM4030), or
  • shares that satisfy the conditions of FA02/SCH16/PARA11 & ITA/s347 ( CITM4040)
  • the investor has received a valid tax relief certificate from the CDFI ( CITM4060) and
  • there are no arrangements concerning protection of the investor against risks relating to the investment (FA02/SCH16/PARA11, ITA/s349 and CITM4050).

Alternative Finance Arrangements

For the purposes of CITR references to ‘loan’ include certain Sharia’a-compliant financial products that in substance, but not in form, are equivalent to interest-bearing loans will be treated as loans for the purposes of the scheme. See CITM4300 for details of the types of arrangement that qualify for this treatment, and how the CITR rules are modified when dealing with such arrangements.


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