Today the Chancellor, the Rt Hon George Osborne MP, has announced in the 2015 Budget the inclusion of Social Venture Capital Trusts to the Social Investment Tax Relief scheme. He has also announced a change in its regulatory status so that funds can be promoted on the same basis as Enterprise Investment Schemes.
Responding to the Chancellor's statement, Simon Rowell, Strategy and Market Development Director, who has led much of Big Society Capital's work on the Social Investment Tax Relief said:
"We welcome Government’s continued commitment to developing and implementing Social Investment Tax Relief. Establishing robust social venture capital trusts will help introduce many new individuals to social investment and significantly increase the funding available to charities and social enterprises. We look forward to working with the venture capital community and Government to help get this legislation working."
Please see the extract from the budget below:
2.78 Social investment – The government will set the rate of Income Tax relief for investment in Social Venture Capital Trusts (Social VCT) at 30%, subject to state aid clearance. Investors will pay no tax on dividends received from a Social VCT or capital gains tax on disposals of shares in Social VCTs. Social VCTs will have the same excluded activities as the SITR. The government will legislate for Social VCTs in a future Finance Bill. The government will change the regulatory status of SITR funds so that they can be promoted on the same basis as EIS funds. (Future Finance Bill) (m)
To read the full budget 2015 please click here