What is Social Investment Tax Relief?
Social Investment Tax Relief (SITR) is the government's tax relief for social investment which encourages individuals to support charities and social enterprises. Individuals receive a 30% tax break when investing in an eligible organisation.
What does GET SITR offer?
Find a range of free resources on SITR including downloadable guides, webinars, events and case studies
Find resources for Investors & Advisers
- Essential guide to Social Investment Tax Relief
- SITR FAQs
- Framework for an application to HMRC for Advance Assurance (for an editable version you can download click here)
- A simple guide to tax reliefs for charities and social enterprises
- Restrictions on leasing, letting assets on hire or licensing
- Changes to the rules in 2017
- A guide to Advance Assurance
- Issues with subsidiaries
- A guide to SITR and property development
- Guidance on operating concessions
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 documents below are examples of documents that have been used in the application process, notably the clearance letter sent to HMRC and the individual transaction documents.
Please note 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 therein. You should be aware that these documents or the information inside them 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)
Help with an advance assurance application to HMRC
As listed under the guides, we also have resources to help organisations apply for advance assurance. This includes an editable framework for an advance assurance application.
There are a number of ways to raise investment using Social Investment Tax Relief:
- Through a specialist SITR fund managed by a social investor
- With the support of a crowdfunding or peer-to-peer lending platform
- Using community shares as your vehicle to engage investment from your community
- As a direct deal, which essentially means you identify the lenders without the support of an investment intermediary (although you may well engage the support of another sort of professional service such as a lawyer, wealth manager or financial adviser)
You can find links to relevant funds, platforms and programmes for raising SITR investment below. Do also watch our webinars where you can hear from experts as well as peers who have already raised SITR investment.
Watch to hear from three organisations who have raised investment using SITR.
Order of the webinar and times:
- Melanie Mills, Big Society Capital - Introduction
- (0:01:10) What is Social Investment Tax Relief
- (0:04:35) Stephanie Limb from Holbrook Community Society talks about how they used community shares eligible for SITR to raise investment
- (0:23:49) Mel Ellis from Challenge Academy talks about how they raised investment through an SITR fund
- (0:38:23) Julius Ibrahim from Second Shot Coffee talks about how they raised investment directly through individuals
- (1:01:10) Questions & Answers
- (1:10:00) Top tips from experts and the panel.
You can watch more of our webinars below. Do also go to our YouTube Channel to see our SITR playlist.
Learn about SITR with our webinars
Listen to our two-part podcast on Social Investment Tax Relief (SITR) and Social Impact Bonds (SIBs).