Big Society Capital welcomes the Government's commitment to establish a social investment tax relief. We believe it is an extremely timely intiative with the potential to transform the social investment market.
This paper is the submission and response of Big Society Capital (BSC) to HM Treasury’s Consultation on Social Investment Tax Relief. Part A discusses why this tax relief is so important. Part B then highlights four key unresolved issues with the current proposal, namely to: ensure simple investment products are eligible (including unsecured loans); increase the size of eligible investments into social sector organisations; extend the permitted indirect investment schemes (including VCT schemes); and permit investment into social impact bonds. Part C responds to certain questions asked in the consultation and other issues raised by it. Part D then discusses some further specific issues arising from the consultation that are not asked directly as questions.