SITR is the government's tax relief for social investment which encourages individuals to support charities and social enterprises by helping them access new sources of repayable finance.
Individuals receive a 30% tax break when investing into an eligible organisation.
SITR has been introduced to encourage new investment into charities and social enterprises and level the playing field with tax reliefs currently available to more traditional business.
A SOCIAL ENTREPRENEUR’S GUIDE TO SITR
There can be a lot of information to consume to fully understand SITR but it doesn't need to be too taxing! Founder of The Freedom Bakery, Matt Fountain, has created a step-by-step guide to help charities and social enterprises learn how they can create their own social investment and raise finance from individuals using the tax break.
A Simple Guide to Financial Promotions
When considering raising funds using SITR, it is important to review the legal conditions of this process, including the financial promotions regime.
In support of our GET IT campaign, Bates Wells Braithwaite have developed “A Simple Guide to Financial Promotions,” offering a legal briefing for charities and social enterprises considering raising funds through investment.
Are you a charity or social enterprise?
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Are you an investor?
A SITR fund is a pool of money obtained from several individual investors under the tax break.
There are currently three funds that focus on SITR
Big Society Capital has supported a legal consultant to develop example SITR documents by working with some of the first charities and social enterprises using SITR.
The below documents provide examples of documents that have been used in the application process, notably the clearance letter sent to HMRC and the individual transaction documents.
These documents are provided by way of example only and are not precedent documents. As such no reliance should be placed on these documents or the information contained herein. You should be aware that this document or the information contained therein may not be appropriate for your particular circumstances. These documents should only be used in conjunction with independent tax advice.
Loan: Example clearance letter and loan agreement (charity)