Thursday, 12 December 2013

Social Investment Tax Relief

Good afternoon
You will have seen the Autumn Statement announcement and, if you were listening, heard the reference to the social investment tax relief in the Chancellor’s speech.
Today the details of the social investment tax relief are published in the government’s response to consultation.   The draft legislative provisions designed to implement them and explanatory notes on the draft legislation are also published.    The rate of income tax relief will be announced at Budget 2014.
The relief will apply to investment in charities, community interest companies (CICs) and community benefit companies (bencoms).   It will also apply to investment in social impact bonds where the special purpose vehicle is a company limited by shares and accredited by a Government-run accreditation scheme.   Cooperatives that can fulfil the conditions for demonstrating a community purpose would be able apply to the Financial Conduct Authority to be registered as a bencom at no extra cost and thus become eligible.
The Government’s consultation response is published at https://www.gov.uk/government/consultations/consultation-on-social-investment-tax-relief
Details of the draft legislation can be found at https://www.gov.uk/government/collections/finance-bill-2014.
If you have any questions please contact rob.parker@cabinet-office.gsi.gov.uk.
 
 
Social Investment and Finance Team | Cabinet Office

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