Social Investment Tax Relief
The government is introducing a new social investment tax relief later this year. The Treasury has recently issued a roadmap setting out the government’s plans. Full details are available on www.gov.uk.
The tax relief is currently envisaged as follows:
- Available for private investment in limited companies that are charities, community interest companies, community benefit societies, and in some social impact bonds.
- Investee organisations are limited to 500 or fewer employees and a maximum of £15 million gross assets.
- A wide range of trading activities, including nursing and care homes, will be eligible, much more than under the Enterprise Investment Scheme.
- Investment in the form of unsecured debt will be eligible for tax relief, subject to certain conditions.
- The minimum investment period is 3 years.
- Income tax relief will be given as a deduction from income tax liability
- Capital gains will be exempt after three years, as for the Enterprise Investment Scheme relief.
- Investments into any one organisation will be subject to a cap.
The tax reliefs look interesting but whether or not this should be regarded as an investment or a donation remains to be seen.
Date: 19th February, 2014
Articles from this Author
20th July, 2017
Uncertain times for winding up transactions
3rd July, 2017
9th June, 2017
27th April, 2017
Government places Making Tax Digital legislation on hold
Contact Business Service Partners
Choose from the drop down menu below to select a Partner to contact.
Our latest edition of UK Inward Investment - what are the opportunities for you, is out now bit.ly/2xB0cun click to read more
For the latest Mercer & Hole news, visit our LinkedIn page mercer-&-hole