Social Investment Tax Relief offers potentially generous tax reliefs to those individuals willing to offer financial support to social enterprises.

Operating in a similar manner to the existing venture capital schemes, the Seed Enterprise Investment Scheme (SEIS) and Enterprise Investment Scheme (EIS), investors may be eligible for one or more of the following reliefs:

• Income tax relief;
• Capital gains tax deferral;
• Capital gains tax exemption upon exit.

Qualifying investments can be in the form of either a loan to, or subscription for shares of, a social enterprise, which includes:

• A charity or charitable trust;
• A community interest company;
• A community benefit society;
• An accredited social impact contractor.

As with most tax reliefs, accessing the various reliefs requires one to meet a number of conditions in respect of the individual, the financial support being offered, and the social enterprise itself.

If you wish to discuss how you can support a social enterprise and benefit from this relief, please contact David Nash on 01788 539000.