Social Investment Tax Relief | Big Society Capital
Social Investment Tax Relief
A tax break for trading charities & social enterprises

SITR is the government's tax relief for social investment which encourages individuals to support charities and social enterprises by helping them access new sources of repayable finance

Individuals receive a 30% tax break when investing into an eligible organisation.

SITR has been introduced to encourage new investment into charities and social enterprises and level the playing field with tax reliefs currently available to more traditional business. Find out more from our essential guide on SITR

 

 

In 2015, we launched GET IT to raise awareness of Social Investment Tax Relief (SITR), a 30% tax relief for individuals investing in charities and social enterprises. GET IT offered a free package of support for charities and social enterprises wanting to raise money using SITR. 

A SOCIAL ENTREPRENEUR’S GUIDE TO SITR 

There can be a lot of information to consume to fully understand SITR but it doesn't need to be too taxing! Founder of The Freedom Bakery, Matt Fountain, has created a step-by-step guide to help charities and social enterprises learn how they can create their own social investment and raise finance from individuals using the tax break. 

Read "A Social Entrepreneur's Guide to SITR."

This guide has been supported by 

A Simple Guide to Financial Promotions

When considering raising funds using SITR, it is important to review the legal conditions of this process, including the financial promotions regime.

In support of our GET IT campaign, Bates Wells Braithwaite have developed “A Simple Guide to Financial Promotions,” offering a legal briefing for charities and social enterprises considering raising funds through investment. 

Are you a charity or social enterprise?

See examples of other charities and social enterprises that have raised money using SITR.

Are you an adviser?

SITR may enable the organisations you work with to raise smaller amounts of investment in a more cost-effective way.

Are you an investor?

Explore how you could use SITR as an investor.

Cabinet Office on SITR

THERE ARE CURRENTLY 3 FUNDS THAT FOCUS ON SITR

Investment Manager: Resonance, partnered with UBS  
Investment Manager: Social Investment Scotland  
Investment Manager: Kin Capital Partners LLP advised by Social Finance  

Example documents

Big Society Capital has supported a legal consultant to develop example SITR documents by working with some of the first charities and social enterprises using SITR. 

The below documents provide examples of documents that have been used in the application process, notably the clearance letter sent to HMRC and the individual transaction documents.

These documents are provided by way of example only and are not precedent documents. As such no reliance should be placed on these documents or the information contained herein. You should be aware that this document or the information contained therein may not be appropriate for your particular circumstances. These documents should only be used in conjunction with independent tax advice.

Social Impact Bond: Example clearance letter and loan note agreement (social impact bond contractor)

Loan: Example clearance letter and loan agreement (charity)

Contact us

Strategy and Market Development Director Speak to me about: Policy relating to SITR.
Social Sector Engagement Director           Speak to me about: How charities and social enterprises can use SITR to raise money. 
Financial Relationships Director                    Speak to me about: How SITR can be used by investors.