HM Treasury has opened a call for evidence until 17 July 2019 on how social investment tax relief (SITR) has been used since it was introduced in 2014, and why take-up of the scheme has been relatively low.
The scheme was introduced because social enterprises are often ineligible to receive investments under existing tax-advantaged schemes, such as the enterprise investment scheme. Individuals making an eligible investment through SITR can deduct 30% of the cost of the investment from their income tax liability, either for the tax year in which the investment is made or the previous tax year. CGT can also be deferred on a chargeable gain by re-investing in a qualifying social investment.
When the scheme was enlarged in 2017, the government announced it would carry out a review within two years of the change taking effect. This call for evidence forms part of that review.
Under current provision, the scheme is due to end in April 2021 for income tax purposes and the government intends to legislate later in the year to introduce a similar end date for CGT relief.
HM Treasury has opened a call for evidence until 17 July 2019 on how social investment tax relief (SITR) has been used since it was introduced in 2014, and why take-up of the scheme has been relatively low.
The scheme was introduced because social enterprises are often ineligible to receive investments under existing tax-advantaged schemes, such as the enterprise investment scheme. Individuals making an eligible investment through SITR can deduct 30% of the cost of the investment from their income tax liability, either for the tax year in which the investment is made or the previous tax year. CGT can also be deferred on a chargeable gain by re-investing in a qualifying social investment.
When the scheme was enlarged in 2017, the government announced it would carry out a review within two years of the change taking effect. This call for evidence forms part of that review.
Under current provision, the scheme is due to end in April 2021 for income tax purposes and the government intends to legislate later in the year to introduce a similar end date for CGT relief.
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