Tuesday, 2 June 2015

Social Investment Tax Relief

Social Investment Tax Relief (SITR) - This new relief is available for investments made between 6 April 2014 and 5 April 2019.

It is intended to support social enterprises by offering a range of tax reliefs to individuals who invest in new shares or new qualifying debt investments in those enterprises. Its main features are as follows:

Income tax relief at 30% on amounts up to £1 million subscribed for qualifying shares or invested in qualifying debt instruments.

No chargeable gain arises on disposal of the investment, provided it has been held for at least 3 years.

Amounts invested may be used to defer tax on other chargeable gains arising in the years 2014/15 to 2018/19.

Social Venture Capital Trusts - A new scheme will be set up for Social Venture Capital Trusts (Social VCTs). The main features are expected to be as follows:

-  the same excluded activities as SITR;
-  income tax relief at 30% on amounts invested, subject to EU state aid clearance;
-  no income tax on dividends received; and
-  no capital gains tax on disposals of shares.

Budget announcement 18 March 2015

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