UK:
Spring Budget: End Of Social Investment Tax Relief
18 April 2023
Withers LLP
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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.
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
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