Social Investment Tax Relief

Big Society Capital’s is asking the Government to consider expanding the eligibility for schemes under its Social Investment Tax Relief (SITR) number stating that criteria are currently too limiting and have been inhibiting take-up.

The request is ahead of the Government’s call for evidence on the current SITR which gives a 30 per cent tax relief for individual investment into social enterprises and charities.

Cliff Prior, CEO of Big Society Capital, commented: “Big Society Capital believes that Social Investment Tax Relief has great potential as a method of supporting social enterprises and charities. It is a vital measure to help tackle important social challenges which will save public money and improve the lives of people living in disadvantage. Although take-up levels have been lower than first anticipated, we believe this can change providing the Government makes amendments to the relief following feedback from the industry. Our belief is backed by a 2018 Europe-wide study, which ranked SITR as the fourth most effective tax incentive for promoting investment into SMEs and start-ups.”

The call to evidence aims to enable the Government to understand how SITR has been used since its introduction in 2014, including levels of take up and the impact on social enterprises and charities’ ability to access finance. It will also help inform the decision regarding whether the relief should be continued beyond April 2021, its current end date.

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