Social investment tax relief extended
The social investment tax relief was due to close on 5 April 2021. However, following a government consultation it has been extended. What's happening with it?
Related Topics
-
Tax relief for lending to your company
You can usually claim tax relief for money you borrow personally to lend to your company. It sounds straightforward but there are in fact a number of restrictions to trip you up. How do you secure the tax relief?
-
Who can't yet sign up for MTD IT?
Making Tax Digital for Income Tax (MTD IT) becomes mandatory from April 2026 for sole traders and landlords with qualifying income over £50,000. However, HMRC’s current guidance makes clear that not everyone can sign up yet. If you are preparing early, are you actually eligible?
-
Pay self-assessment tax
Social investment tax relief (SITR) offers private investors an incentive to fund qualifying "social enterprises", either via a subscription for shares or by making a loan to the entity. A social enterprise is defined as any of the following:
- a community interest company;
- a community benefit society that is not a charity;
- a charity; or
- an accredited social impact contractor.
For SITR purposes, a charity can have the legal form of either a company or a trust.
The reliefs are broadly modelled on the Enterprise Investment Scheme, and were due to end after 5 April 2021. However, following consultation, the government has extended the end date to 5 April 2023 instead.
Guidance on the scheme is available here.
This website uses both its own and third-party cookies to analyze our services and navigation on our website in order to improve its contents (analytical purposes: measure visits and sources of web traffic). The legal basis is the consent of the user, except in the case of basic cookies, which are essential to navigate this website.