Citation, commencement and effect

1. These Regulations may be cited as the Community Investment Tax Relief (Accreditation of Community Development Finance Institutions) (Amendment) Regulations 2013.

2. These Regulations come into force on 1st April 2013.

3. Regulations 6 to 10 and 11(3) and (4) take effect only in relation to a CDFI whose current accreditation period starts on or after 1st April 2013, and regulation 11(1) takes effect only in relation to investments made in a CDFI on or after 1st April 2013.

Amendment of S.1. 2003/96

4.The Community Investment Tax Relief (Accreditation of Community Development Finance Institutions) Regulations 2003( 2 ) are amended as follows.

5. In regulation 2( 3 )—

(a) omit the definition of “the Director of Enterprise Environment”,

(b) before the definition of “investment”, insert—

“ “the first investment” in relation to an investment made in a CDFI means the first investment made in the CDFI in its current period of accreditation; ” ,

(c) in the definition of “investment”, for “paragraph 2 of Schedule 16 to the Finance Act 2002” substitute “section 221 of the Corporation Tax Act 2010”, and

(d) in the definition of “qualifying investment”, for “paragraph 8 of Schedule 16 to the Finance Act 2002” substitute “section 225 of the Corporation Tax Act 2010”.

6. In regulation 8(1)( 4 )—

(a) in sub-paragraph (a) for “the date the CDFI was first granted accreditation (“the accreditation date”)” substitute “the date the first investment was made in the CDFI”, and

(b) in each of sub-paragraphs (b), (c) and (d) for “the accreditation date” substitute “the date the first investment was made in the CDFI”.

7. After regulation 12 insert—

“ Notice of first investment in a CDFI

12A. —(1) A CDFI must notify the Secretary of State in writing of the date the first investment is made in the CDFI, no later than three months after that date.

(2) A CDFI that does not comply with paragraph (1) is liable to a penalty of £500 payable to the Department for Business, Innovation and Skills.

(3) But paragraph (2) does not apply if in the opinion of the Secretary of State the CDFI had a reasonable excuse for failing to comply with paragraph (1). ”

8. In regulation 13( 5 )—

(a) in paragraph (1)(a), for “the date on which the CDFI was last granted accreditation” substitute “the date the first investment was made in the CDFI”, and

(b) in paragraph (2), for “the date accreditation was granted” substitute “the date the first investment was made in the CDFI”.

9. In regulation 15A(1)( 6 ), for “the date that the CDFI was first granted accreditation”, substitute “the date the first investment was made in the CDFI”.

10. In regulation 15B(1)( 7 ), for “the date a CDFI was first granted accreditation” substitute “the date the first investment was made in a CDFI”.

11. —(1) Schedule 1 is amended as follows.

(2) In paragraph 4( 8 )—

(a) in sub-paragraph (1) omit the words “or equity investment in”, and

(b) in sub-paragraph (3)—

(i) in paragraph (a) omit “or equity investments”,

(ii) in paragraph (b) omit “or investment”, and

(iii) for “shall determine which of those loans or investments shall not” substitute “shall determine which of those loans shall not”.

(3) In paragraph 9—

(a) For sub-paragraph (a), substitute—

“ (a) for the first year following the date the first investment is made in the CDFI, the date the investment is made by that CDFI, and ” , and

(b) in sub-paragraph (b) for “accreditation date” substitute “date the first investment is made in the CDFI”.

(4) In paragraph 11(1)(a)—

(a) for paragraph (i), substitute—

“ (i) for the first year following the date the first investment is made in the CDFI, the date the investment is made by that CDFI, and ” , and

(b) in paragraph (ii), for “accreditation date” substitute “date the first investment is made in the CDFI”.

12. In the following provisions, for “Director of Enterprise Environment” substitute “Secretary of State”—

(a) regulation 7(4);

(b) regulation 12(1), (2) and in each place in (3);

(c) regulation 13(5);

(d) regulation 15(3);

(e) regulation 16(2)(c) and (3); and

(f) paragraphs 2(2) and 4(3) of Schedule 1( 9 ).