The government has today published a series of tax documents, consultations and consultation responses as part of ‘Tax Day’ 2021.
Today’s documents include a summary of responses to the call for evidence on SITR which was launched in April 2019.
The response document can be found here and it is fair to say that the responses are mixed.
As we said in our 2021 Budget note published on 3 March, SITR has very worthy objectives, assisting social enterprises to raise funds where they might otherwise struggle to do so. However there has been little take up of SITR. HMRC’s last statistics in May 2020 state that since SITR was launched in 2014, 110 social enterprises have raised funds of £11.2 million through SITR. This may be because the limits for SITR investment are much smaller than for EIS, and so it is generally better if a social enterprise can take advantage of EIS instead.
As we also mentioned, the Chancellor announced in the Budget that the sunset date for SITR will be extended to 5 April 2023.
