12 July 2013

HM Treasury and BIS open consultation on social investment tax relief

The Government announced in this year’s Budget that it would be introducing a new tax relief for private investment in social enterprise from 2014, which will complement other government initiatives aimed at helping social enterprises to grow and innovate. The consultation was published by HM Treasury and the Department for Business last month following an announcement by the Prime Minister in his speech at the Social Impact Investment Forum earlier that day.

The consultation seeks views on the Government’s proposed design of the new tax relief and will cover the investees and types of investment eligible for the new tax relief. The rate of relief itself will not be announced until next year’s Budget. George Osborne hopes that social enterprises, investors, representative bodies and others interested in the success of this new relief will play a full part in the consultation process and will feed in their views to ensure the relief works simply and effectively to achieve its objectives.

The consultation closes on 6 September 2013 and the consultation paper can be viewed online here.

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