Responding to the publication of the Finance Bill 2014 Draft Legislation,
Responding to the publication of the Finance Bill 2014 Draft Legislation, Nick O’Donohoe, Chief Executive of Big Society Capital said: “The draft legislation for the Social Investment Tax Relief sets out a bold ambition to offer comparable incentives for those investing in charities and social enterprises as are currently on offer for those investing in SMEs. We are yet to see the details of the rate of relief but if, as we expect, it is similar to EIS, this Relief has the potential to unlock half a billion pounds in new finance to enable charities and social enterprises to grow and do more.
Charities and social enterprises are diverse and unique, with a broad variety of finance needs, from simple debt to social impact bonds. We therefore urge social organisations to continue to engage in the final drafting of the legislation, either directly or through their umbrella bodies, to ensure that the Relief works for the sort of investment they really need. We also call on HM Treasury to continue to facilitate this, and make sure they continue to listen to the voices of social organisations, as well as to potential investors.
There are some outstanding questions around the mechanisms that can be used to make indirect investments, and the total investment amount that relief can be claimed on. However, as set out in the Autumn Statement, we expect these to be dealt with in January as part of the Social Investment Roadmap promised by HM Treasury.”