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.
Social Investment Tax Relief (SITR) is a relatively new tax incentive for individuals investing into social enterprises. Under SITR, individuals can claim back 30% of their investment from HMRC. See our factsheet for professional advisers below. You can also download the factsheet.
Social Investment Tax Relief (SITR) was recently ranked 4th out of 46 in a Europe-wide study on the effectiveness of tax incentives to foster investment into SMEs and start-ups. It is also the only tax relief of all those reviewed that is specifically targetted at charities and social enterprises. So this is definitely something to celebrate!
As part of our campaign to raise awareness about Social Investment Tax Relief (SITR), we teamed up with social enterprise Breadshare to show just how simple it is. If you don’t know about SITR or not sure how it works, Breadshare’s chief baker explains literally by using his loaf!
We often get asked what the differences are between the various tax reliefs available to charities and social enterprises. This is why, together with Bates Wells Braithwaite (BWB), we are pleased to publish A Simple Guide to Tax Reliefs. As well as covering the relatively new Social Investment Tax Relief (SITR), it also covers SEIS, EIS, CITR, IFISAs and Gift Aid.