Community Investment Tax Relief (CITR)

Introduction

The CITR scheme encourages investment in disadvantaged communities by giving tax relief to investors who back businesses and other enterprises in less advantaged areas by investing in accredited Community Development Finance Institutions (CDFIs).

The tax relief is available to individuals and companies and is worth up to 25% of the value of the investment in the CDFI. The relief is spread over five years, starting with the year in which the investment is made.

Technical Guidance

Our guidance on the scheme is contained in the Community Investment Tax Relief manual (CITM). This manual is likely to be of most use to tax practitioners and those working within CDFIs.

Guide to calculate the de minimis aid for companies (PDF 25K)

Guidance for investors

Within the CITM there is a brief guide intended to help individuals who may be considering investing under the scheme.

There is also a Help Sheet (HS237) (PDF 53K) to assist individuals claiming the relief.

Information for CDFIs seeking accreditation

The CITR scheme is administered jointly by HMRC and the Department for Business, Innovation and Skills (BIS) (Opens new window). The BIS website includes information on the processes involved for CDFIs seeking accreditation under the scheme.

Tax Relief Certificate

Once a CDFI has received a suitable investment it issues the investor with a tax relief certificate [PDF 51K].