The Government introduced the Social investment tax relief in Finance Bill 2014 to kickstart social investment in the UK. The relief has been introduced following consultation last year and offers 30 per cent tax relief for investment by private individuals in eligible charities, community interest companies and community benefit societies.
The guidance on SITR for social enterprises and investors that HMRC has published is available at: www.hmrc.gov.uk/sitr
Future expansion of the scheme
As part of its longer term plan to grow social investment in the UK, the Government has published a consultation paper Social investment tax relief: enlarging the scheme
Following up issues raised in last year’s consultation, the paper seeks views on the maximum amount of tax-advantaged investment social enterprises should be able to receive and how an indirect option via a separate legal entity should be designed and implemented.
It also considers social impact bonds, community agriculture and renewable energy schemes in an expanded scheme. A consultation paper on venture capital schemes “Tax-advantaged venture capital schemes: ensuring continued support for small and growing businesses” has also been published.
Replies, responses and any questions about the consultation should be directed to: [email protected].