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.