Social Enterprises: Tax Allowances

(asked on 22nd February 2021) - View Source

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, if he will maintain the Social Investment Tax Relief; and if he will take steps to reform that relief so that enterprises in community energy and tackling climate change qualify for investment.


Answered by
Jesse Norman Portrait
Jesse Norman
This question was answered on 25th February 2021

The Social Investment Tax Relief (SITR) was introduced in 2014 to incentivise risk finance investments in qualifying social enterprises and charities. In order to target SITR towards the highest-risk social enterprises, certain activities are excluded from the scheme, including community energy.

HMRC statistics show that up to 2018-19, about 110 enterprises have used the scheme to raise £11.2 million.

The Government keeps all taxes and reliefs under review in order to ensure they continue to meet policy objectives in a way that is fair and effective. The Government previously published a Call for Evidence in 2019 on SITR’s use to date. A response to the consultation will be published in due course and a decision on SITR’s future will be announced at the Budget.

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