Last chance to respond to HM Treasury’s SITR consultation

There is still a little time to contribute to The Treasury’s consultation on social investment tax relief (SITR), which ends on 17 July. The consultation is an opportunity to influence how this tax relief could be updated to financially benefit more charities and social enterprises.

SITR affords investors who invest in qualifying entities (broadly, charities, CICs or bencoms), a reduction on their income tax bill equivalent to 30% of the qualifying investment they have made.

Social enterprises accessing investment directly, as well as SITR funds, developed by the likes of Resonance and others, have harnessed private investment using this relief, which has helped to change the perception for many social enterprises about opportunities for growth.

However, the relief has been underused, largely due to a number of barriers that organisations must overcome to take advantage of SITR.
The Treasury’s consultation is seeking to listen to the sector: to investors, intermediaries and to organisations which have or haven’t used SITR for a number of reasons. The broader the responses received, the better.

Stone King believes that SITR should be a useful tool to help social enterprises to attract investment from individuals who want to support early stage commercial initiatives delivering social impact.  However, in our view, the SITR rules are unnecessarily restrictive.

We have prepared our response, which we will share in an upcoming Stone King blog post.

If you have any feedback that you would like us to include please contact Nicole Reed, or if you would like to find out more and respond directly, please visit the consultation page.

The consultation launched on 24 April and will end at 11.59pm on 17 July 2019.