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.
The proposed changes to the SITR legislation laid out in the 2016 Autumn Statement have now been made law. HMRC should now be accepting advance assurance applications for the higher limit (up to £1.5 million) for certain eligible organisations. Please review our guide to all of the changes in legislation here.
Are you a charity or social enterprise?
Are you an adviser?
Are you an investor?
A SITR fund is a pool of money obtained from several individual investors under the tax break.
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)