The Chancellor announced in his latest budget measures to boost investment in social enterprises. More details have now been revealed.
Social investment tax relief (SITR) is now available for investments made by members of the public into not only social enterprises (CICs) but also charities and community benefit societies. Investments made after 6 April 2014 will be eligible if they are invested for at least 3 years. Tax relief of 30% will be applied, as a deduction from the investor’s income tax liability. There are also valuable capital gains tax relief available.
Investments may be configured as shares or debt (such as a simple loan) and there is a cap of £290,000 per organisation. to qualify, social enterprises must employ less than 500 employees and have gross assets under £15 million.
However, the regulations are quite complex and several conditions must be met by both the investor and the organisation. We are seeking advice from appropriate sources and will bring you more details as we get it. Alternatively, you can seek professional financial advice yourself if you are interested in taking advantage of this new opportunity.
In the meantime, if you are considering investing in Go4 Enterprises please contact Steven Dale via his email at newbeltane@gmail.com.
As Directors we are currently exploring this option of raising funds to expand our services and hope to make an announcement in the near future.
