The budget revealed the government's plan to end Social Investment Tax Relief ("SITR").
Introduced in 2014, SITR provides tax relief for individuals who invest in qualifying social enterprises and certain charities. Investors can deduct 30% of the cost of their investment from their income tax liability and can defer capital gains tax by investing a chargeable gain in a qualifying social investment (with tax instead becoming payable when the social investment is sold).
SITR had previously been extended (in the 2021 budget) for two years, but the government announced that the scheme will not be renewed further, and SITR will end for any new investments from 6 April 2023.
For full details of the Spring budget, see here.
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