Social investment tax relief extended
The social investment tax relief was due to close on 5 April 2021. However, following a government consultation it has been extended. What's happening with it?
Social investment tax relief (SITR) offers private investors an incentive to fund qualifying "social enterprises", either via a subscription for shares or by making a loan to the entity. A social enterprise is defined as any of the following:
- a community interest company;
- a community benefit society that is not a charity;
- a charity; or
- an accredited social impact contractor.
For SITR purposes, a charity can have the legal form of either a company or a trust.
The reliefs are broadly modelled on the Enterprise Investment Scheme, and were due to end after 5 April 2021. However, following consultation, the government has extended the end date to 5 April 2023 instead.
Guidance on the scheme is available here.
Related Topics
-
VAT-saving opportunity with changes to the CGS?
The government has announced that it will increase the capital goods scheme (CGS) threshold for capital expenditure on land and buildings from its current level of £250,000. What will the new threshold be, and how can you take advantage?
-
Delay salary to save tax
As a company owner manager, you decide when to take income from your business. If that’s your only source of income, tax planning is relatively simple but it’s trickier if you have other sources. What’s the best strategy to improve tax efficiency?
-
Loan written off: are you in HMRC’s crosshairs?
HMRC is writing to directors that took a loan from their company that was later written off or released. What should you do if you receive a letter?