The next six weeks is crucial in an on-going campaign to save Social Investment Tax Relief (SITR) for the success of future community share offers.
Due to a sunset clause in the legislation, SITR will be retired by April 2021 unless action is taken now to extend it.
Social Investment Tax Relief (SITR) is a tax incentive for individuals making an investment into an eligible charity or social enterprise, this includes Community Benefit Societies running community share offers. Investors can claim back 30% of their investment from HMRC which of course encourages them to invest more into their community.
If you're from a society that benefited from SITR when running a community share offer – or you’re planning to run a share offer in future – this is your chance to secure this support for the future. We also encourage individuals who have invested in community share offers to contact their MP.
The Chancellor of the Exchequer, Rishi Sunak, will announce a decision on SITR’s future in the next budget on 3 March 2021.
Isla McCulloch, Programme Manager – Community Shares Standards, Co‑operatives UK says:
"Since it was introduced we have seen at least £7.7million raised through community share offers that have offered SITR to their investors. It's crucial that this relief continues to be offered as a tangible and impactful policy that directly supports the government's levelling up agenda and has supported vital community anchors like pubs, hubs, football clubs and more."
Recent research published by Co‑operatives UK evidenced the significant impact it specifically had on the amount community shares investors were willing to commit:
Of those influenced by the offer of tax relief, 70% have invested more than £1,000 in community shares overall and 24% have invested more than £10,000. In contrast, 71% of those not influenced by tax relief invested less than £1,000 in total and only 5% invested more than £10,000.
How you can support this ask
Please ask your MP to contact the Chancellor of the Exchequer, Rishi Sunak, and Financial Secretary to the Treasury, Jesse Norman, to press the importance of extending SITR!
- Download a template letter to send to your MP – on behalf of a society or as an individual.
- Search for your MP and find their email address at www.writetothem.com, which will make the process easier.
- If you do receive a response, please forward it on to [email protected], Programme Manager Community Shares Standards at Co‑operatives UK.