London: +44 (0)20 7236 2601
St Albans: +44 (0)1727 869141
Rickmansworth: +44 (0) 1923 771010
Milton Keynes: +44 (0)1908 605552

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

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
Author: Cathy Corns


Articles from this Author

Contact Business Service Partners

Choose from the drop down menu below to select a Partner to contact.


Thinking of outsourcing your business? Want to know the key benefits on why you should outsource the financial func……

We are proud to be a sponsor of the Herts Show @hertscountyshow #HertsShow



For the latest Mercer & Hole news, visit our LinkedIn page mercer-&-hole

Click here to follow us on LinkedIn