Social Investment Tax Relief is a tax incentive for individuals making an investment into a charity or social enterprise. Individuals making an eligible investment can deduct 30% of the cost of their investment from their income tax liability. It is modelled on the existing Enterprise Investment Scheme.
The maximum investment into an individual organisation is approximately £270,000 over three years. Individual investors can invest up to £1 million and can invest in multiple charities and social enterprises per year.
Find out more from the resources below:
- Social Investment Tax Relief: Factsheet for professional advisers (Big Society Capital)
- Social Investment Tax Relief Guidance (HM Treasury)
- Social Investment Tax Relief:a brief guide (Morton Fraser, Scott-Moncrieff and Social Investment Scotland)
- Changes to the rules in 2017 (Big Society Capital)
SITR: How does it work and how can it be useful? (Bates Wells Braithwaite)
SITR for the many, not the few - an estimate of the market (Big Society Capital)
Tax reliefs for Angel Investors (UK Business Angels)
GET SITR and sizing the market
GET SITR is a campaign to raise awareness of Social Investment Tax Relief so more charities, social enterprises and investors know about it. As part of the campaign, we did a piece of work sizing the market to estimate the number of organisations eligible for the relief. As a headline, we believe there are over 30,000 organisations that could benefit from SITR. But, to date, only around 60 deals have been completed. This tells us that there is a lot more that can be done.
In addition to the market sizing exercise, we are also working on an SITR 'Open Source' database of deals that have taken place. We hope to use this information to improve understanding of SITR. You can also read our blog on the work.
How you can help
If you're interested in contributing to the database and/or have ideas about market sizing you'd like to share with us, please get in touch:
Podcast: SITR - What advisers need to know
We recently hosted a workshop for advisers and investors on the technical aspects of SITR. Listen below to the expert advice delivered by Neil Pearson, Partner at Mills and Reeves:
Take a look at the slides from the workshop - Social Investment Tax Relief: The New Rules.
Podcast: SITR and Social Impact Bonds
Listen to our two-part podcast on Social Investment Tax Relief (SITR) and Social Impact Bonds (SIBs).
- Part 1 features Mark Simms, CEO of charity P3, who talks about their experience of SITR and SIBs.
- Part 2 features Katalin Juhasz, Investment Manager at Resonance, with their experience of SITR and SIBs.
Many advisers and investors are already exploring how to use the relief – please feel free to contact them on their details below (note this is not an exhaustive list):
- Social Investment Scotland – contact Alastair Davis
- FSE Group – contact Jeff Dober
- Social and Sustainable Capital – contact Ben Rick
- ClearlySo – contact Mike Mompi
- Triodos – contact Whitni Thomas
- Ethex – contact Jamie Hartzell
- Resonance – contact Grace England
- Community Shares Unit – contact Simon Borkin