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Social Investment Tax Relief: community benefit society response template

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cbs_member_template.docx DOCX, 17.39 KB
Type: Co-operatives UK documents  |  Topic: About co-operatives  |  Format: Documents and policies

Government is about to close a 'Call for Evidence' on Social Investment Tax Relief (SITR). Co-operatives UK is seeking to influence the SITR Review to secure a more useful relief for the sector. The more government hears from community benefit societies the better chance we will all have of making an impact.

Help us make an impact by submitting a quick response of your own

We have produced a very short template for our community benefit society members to use in a response to government's SITR consultation.

Please download the template, make a few additions and email your society's response to: [email protected] by 11.59 pm on Wednesday 17 July.

Please also copy us in at [email protected].

Please fill in some brief details about your community benefit society at the beginning of the document.

We really need officials working on this consultation to be aware of the distinctive nature of community benefit societies, especially when it comes to: the nature of community benefits being delivered; the limits on return on investment; the lack of capital gain for investors and the lack of profit distribution.

The more responses government receives from community benefit societies explaining these things from their own unique perspectives, the better.

Our key arguments and recommendations 

Our template also contains our key arguments and recommendations for how SITR could be made more useful for community businesses and co-ops. 

Please feel free to retain, amend or omit these as you see fit. 

Our full reponse

We have co-produced a detailed response with our members and partners. 

Our recommendations for improving Social Investment Tax Relief 

  • Set a clear policy objective for SITR to enable more social investment on the part of engaged stakeholder/beneficiary communities
  • Create a Social Entrepreneurs’ Relief by removing the ‘no employee investors requirement’ from SITR
  • Increase the lifetime limit to that set for EIS
  • Remove the rules under Section 257MJ of the Income Tax Act 2007 that make investments supporting activities that HMRC would not consider to be a ‘trade’ ineligible for SITR 
  • Make the community ownership and leasing of assets eligible for SITR 
  • Remove renewable energy generation and export from the excluded activities list for SITR 
  • Remove production of primary agricultural products from the excluded activities list for SITR 
  • Make property development by an asset locked community benefit society eligible for SITR
  • Establish criteria and a checking process that allows certain co-operative societies to benefit from SITR
  • Create a 50 percent tax relief for seed social investments equivalent to SEIS (‘Seed SITR')
  • Remove the seven year age limit for businesses offering SITR to investors 
  • Develop a scheme whereby social investors can ‘gift’ the value of their SITR to the business they are investing in 

Contact

e: [email protected]

t: 0161 214 1775