SITR is the government's tax relief for social investment which encourages individuals to support charities and social enterprises by helping them access new sources of repayable finance.
Individuals receive a 30% tax break when investing into an eligible organisation.
SITR has been introduced to encourage new investment into charities and social enterprises and level the playing field with tax reliefs currently available to more traditional business.
New free resources that provide guidance on different aspects of SITR are now available. If you are a charity or social enterprise find these here, if you are an advisor find these here.
News Update
Due to the calling of the General Election, there has been a delay in the implementation of the proposed changes to the SITR legislation laid out in the Autumn Statement 2016. The Financial Secretary to the Treasury (FST) confirmed in the House of Commons on 25th April that there has been no policy change and the government would legislate for the provisions at the earliest opportunity in the next Parliament.
Here is guidance on the 2017 rule changes:
Are you a charity or social enterprise?
Are you an adviser?
SITR Funds
A SITR fund is a pool of money obtained from several individual investors under the tax break.
Funds that focus on SITR
Example documents
Big Society Capital has supported a legal consultant to develop example SITR documents by working with some of the first charities and social enterprises using SITR.
The below documents provide examples of documents that have been used in the application process, notably the clearance letter sent to HMRC and the individual transaction documents.
These documents are provided by way of example only and are not precedent documents. As such no reliance should be placed on these documents or the information contained herein. You should be aware that this document or the information contained therein may not be appropriate for your particular circumstances. These documents should only be used in conjunction with independent tax advice.
Social Impact Bond: Example clearance letter and loan note agreement (social impact bond contractor)
Loan: Example clearance letter and loan agreement (charity)
