Social investment tax relief extended

The social investment tax relief was due to close on 5 April 2021. However, following a government consultation it has been extended. What's happening with it?

Social investment tax relief extended

Social investment tax relief (SITR) offers private investors an incentive to fund qualifying "social enterprises", either via a subscription for shares or by making a loan to the entity. A social enterprise is defined as any of the following:

  • a community interest company;
  • a community benefit society that is not a charity;
  • a charity; or
  • an accredited social impact contractor.

For SITR purposes, a charity can have the legal form of either a company or a trust.

The reliefs are broadly modelled on the Enterprise Investment Scheme, and were due to end after 5 April 2021. However, following consultation, the government has extended the end date to 5 April 2023 instead.

Guidance on the scheme is available here.

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