I remain cynical about the way British and other politicians modify tax codes to complexify life but I suppose I ought to rejoice that there is an encouragement for SIB structures going forward.
Interesting reading…
Gov’t To Broaden Social Tax Relief But With Restrictions
Donia O’Loughlin – FT Advisor
The government will make special purpose vehicles for subcontracted and spot-purchase social impact bonds eligible for social investment tax relief through secondary legislation in the autumn next year. The government will consult in early 2015 on introducing a Social Venture Capital Trust in a future finance bill.
Big Society Capital Welcomes Increase In Limits For Social Investment Tax Relief
Sam Burne James – Third Sector
A substantial increase in the limit for investments under the social investment tax relief scheme, as announced in the Autumn Statement today, has removed the single biggest barrier to greater uptake of the relief, according to the social investment wholesaler Big Society Capital.
SITR, which is designed to give charities and social enterprises better access to finance through investments from individuals, came into force in April.
It allows investors to claim back 30% of the value of these investments against their tax bills, up to a maximum of £1m in investments in a year.
Today, George Osborne, the Chancellor of the Exchequer, announced that organisations may receive up to £5m of SITR-eligible investments in any one year, and up to £15m in the organisation’s lifetime.
This is a substantial rise from the existing limit of less than £300,000 over a three-year period. Subject to European Commission approval, this will come into force in April.