Share

Government to create social investment road map

Government to create social investment road map
News

Government to create social investment road map

Finance | Vibeka Mair | 5 Dec 2013

Treasury has today announced that it will publish a road map for social investment in 2014; and introduce two social investment tax reliefs, for social enterprises and social impact bonds.

In April of next year, the government will introduce a social investment tax relief for social enterprises. The relief will be available for equity and certain debt investment in charities, community interest companies and community benefit societies.

The government will also introduce a tax relief on investment in social impact bonds where the special purpose vehicle is structured as a company limited by shares.

It is expected to announce details on both next week.

Before this, in January 2014, the government will publish a road map for social investment setting out its next steps. These include seeking state aid clearance for a larger tax relief scheme, looking at options for supporting indirect investment and making changes to regulations for community interest companies to make them more attractive to investors and social organisations.

Nick O’Donohoe, chief executive of Big Society Capital, has welcomed the government's move. He said:
 
“Until now, social investment has been dominated by charitable foundations, the government and Big Society Capital, but these plans could open it up to thousands of individual investors.
 
“Today’s announcement that the relief will include a range of debt and equity products as well as social impact bonds is positive, as this should provide what many organisations crucially need, as well as accelerate the development of innovative social outcomes-based products.
 
“We now hope to see the government deliver on its bold ambitions in the detail of the draft legislation next week by setting the rate of relief for investors to be comparable with existing reliefs such as the enterprise investment scheme, and ensuring the relief applies to investment of sufficient size that it will really enable organisations to grow and develop.”

Luke Fletcher, a partner at Bates Wells Braithwaite, also welcomed that the government had opened up the social investment tax relief to social impact bonds, but noted that companies limited by guarantee and co-ops were not included. 

"The devil will be in the detail of the draft legislation, which will be published on 10 December. We wait to see, for example, if the scope of eligible investee enterprises might change over time but the direction of travel looks promising," he said.

Jane Tully, head of policy and public affairs at CFG, said she hoped simple unsecured loans will qualify for the relief on investment into social enteprise.

While Dan Corry, chief executive of NPC, also welcomed the news, he cautioned: "We must remember that tax breaks for social investment do nothing for the vast majority of the charitable sector."

 

 

Comments

[Cancel] | Reply to:

Close »

Community Standards

The civilsociety.co.uk community and comments board is intended as a platform for informed and civilised debate.

We hope to encourage a broad range of views, however, there are standards that we expect commentators to uphold. We reserve the right to delete or amend any comments that do not adhere to these standards.

We welcome:

  • Robust but respectful debate
  • Strongly held opinions
  • Intelligent relevant discussion
  • The sharing of relevant experiences
  • New participants

We will not publish:

  • Rude, threatening, offensive, obscene or abusive language, or links to such material
  • Links to commercial organisations or spam postings. The comments board is not an advertising platform
  • The posting of contact details for yourself or others
  • Comments intended for malicious purpose or mindless abuse
  • Comments purporting to be from another person or organisation under false pretences
  • Gratuitous criticism, commentary or self-promotion
  • Any material which breaches copyright or privacy laws, or could be considered libellous
  • The use of the comments board for the pursuit or extension of personal disputes

Be aware:

  • Views expressed on the comments board are left at users’ discretion and are in no way views held or supported by Civil Society Media
  • Comments left by others may not be accurate, do not rely on them as fact
  • You may be misunderstood - sarcasm and humour can easily be taken out of context, try to be clear

Please:

  • Enjoy the opportunity to express your opinion and respect the right of others to express theirs
  • Confine your remarks to issues rather than personalities

Together we can keep our community a polite, respectful and intelligent platform for discussion.

Free eNews

FRSB calls for new rules on asking elderly and vulnerable for donations

24 Apr 2014

The Fundraising Standards Board has recommended the Institute of Fundraising develops additional guidance...

ASA: “I wish I had breast cancer campaign” did not breach guidelines

23 Apr 2014

The Advertising Standards Agency has not upheld criticism over a series of controversial adverts by Pancreatic...

HMRC doubles scrutiny of charity gift aid claims following Cup Trust

22 Apr 2014

HM Revenue & Customs more than doubled the number of investigations into claims for gift aid in the...

Horse charity faces closure amid claims it is owed £70k by council

23 Apr 2014

A horse charity in Northern Ireland has said it may have to shut because of a massive bill it believes...

Shawcross terror warning in national press

22 Apr 2014

Terrorist abuse of charities is “potentially the most deadly” problem the Charity Commission faces,...

Husband and wife jailed for three years for charity theft

22 Apr 2014

The former chair of Lincoln and District Mencap and his wife have both been jailed for fraud and theft...

'Technology can offer charities more than just online donations'

10 Apr 2014

Charities are focusing too much on using digital tools for fundraising instead of how technology can be...

Amnesty calls for 'full and frank disclosure' on alleged US surveillance

9 Apr 2014

Amnesty International has warned that alleged mass surveillance by the American intelligence agency NSA...

Virgin Money Giving launches app following year of growth

1 Apr 2014

Virgin Money Giving has launched an app for users after reporting that 30 per cent of traffic to its platform...

Join the discussion

 Twitter button

@CSFinance