(from the Civil Society website)
The government has asked charities to respond to its call for evidence on the use of the social investment tax relief (SITR).
SITR allows an investor to claim back 30 per cent of the value of an unsecured loan to an eligible charity against their tax bill. The relief, which was introduced by the government in 2014, is only open to individual investors. The government will consult until 17 July on investors’ and investees’ experience of SITR so far, and welcomes suggestions for improvements. Big Society Capital said its main request would be for current restrictions around the tax relief to be relaxed, as it says these have been “inhibiting take-up”.
At present, the limit for eligibility is £1.5m, and raising this limit is also under consideration.
The take-up of the scheme has been disappointing, with only £5.1m of investment in the first three years, against a prediction of £83.3m.
If you have experience of this programme – whether as a participant, or as an organisation which has not benefited, then you are invited to take part in the consultation by following this link.
The closing date is midnight on 17 July.