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