HM Treasury review of Social Investment Tax Relief (SITR)

At Budget 2018, the Government announced that it would seek views on the Social Investment Tax Relief (SITR). HM Treasury has now announced a call for evidence seeking the views of organisations and individuals on how SITR has affected access to finance for social enterprises.

Its aim is to enable the Government to understand how SITR has been used since its introduction in 2014, including the levels of take-up and what impact it has had on social enterprises’ access to finance. The SITR has a sunset clause which will bring the scheme to an end in April 2021, and the call for evidence will help inform a decision about the future of the relief. The deadline for comments is 17 July 2019, with responses to be sent to [email protected].

Questions

  1. If you are a social enterprise, are you interested in or planning to scale up? How do you intend to achieve this and how much do you hope to raise in investment?
  2. Other than individual investors, what sources of finance do trading social enterprises seek and acquire?
  3. How difficult or easy is SITR to access for social enterprises?
  4. What are the factors that lead to a successful trading social enterprise?
  5. Do you think social enterprises need private investment and for what purposes?
  6. Is tax the most appropriate government lever for supporting funding for social enterprises?
  7. What criteria would be best measure of success for SITR?
  8. Is the SITR limit of £1.5 million appropriate?
  9. If you are an investor, have you made an investment that was eligible for SITR? If not, why not?
  10. Would you invest in social enterprise without tax relief?
  11. What are your expectations when you invest in social enterprise? For how long do you expect to invest? Would you expect/prefer to invest in equity or debt
  12. Have you used, or considered using, the Enterprise Investment Scheme or Seed Enterprise Investment scheme for impact investing?
  13. If you are a social enterprise, would you use SITR? If not, why not?
  14. As an investor, enterprise or interested party, do you have a view as to why the take up of SITR has been less than expected?
  15. Are you aware of any international examples of similar tax reliefs that have experienced greater take up than SITR?
  16. How did you hear about SITR?

Tell us how you are affected