Download the full outcome
Detail of outcome
A summary of responses and the outcome of the consultation on enlarging the social investment tax relief (SITR) scheme. This details decisions taken by the government on raising the amount of investment organisations can receive through SITR; the application of SITR to social impact bonds (SIBs), community energy and agriculture schemes; and establishing a venture capital trust (VCT) like option for social investment in the future.
The government conducted a formal consultation in summer 2013 on the design of SITR, which informed SITR legislation published in draft in December 2013. The government published the social investment roadmap in January 2014 setting out how it would address issues not covered in the draft legislation. Since then, the government has consulted members of the social investment sector informally to determine the key issues that need to be addressed in this consultation.
This consultation covers:
- the maximum amount of money an investee organisation should be able to receive under the scheme, to inform the government’s case to the European Commission to increase the investment limit
- requirements for renewable energy and agriculture under an expanded scheme
- the types of social impact bond that an enlarged SITR should include
- options for providing for indirect investment via a separate legal entity
Views on the design and implementation are invited from a wide range of sources including individuals, organisations, and representative and professional bodies. The government especially invites comments from those directly involved in investing in or seeking investment for social enterprises.
Additional ways to be involved
The government set up a sector-focused working group in summer 2013 to discuss the design of SITR. The government will reconvene the group to discuss the questions introduced in this consultation, and will also consider new nominations. If you are not already part of the working group and would like to be, please send nominations, including details of your current position, by email to email@example.com as soon as possible and before the 21 July 2014.
The government will take into consideration all of the responses before making policy decisions. A summary of responses and draft legislation will be published in the autumn. Any legislation will be taken forward in a future Finance Bill.