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

Legacy income rises 9.8 per cent, finds benchmark survey

2 Mar 2015

Like-for-like legacy income among large charities is up 9.8 per cent in the year to December 2014, according...

Diabetes UK raises £18.6m through Tesco partnership

27 Feb 2015

Tesco employees, suppliers and customers raised over £18m for Diabetes UK between March 2013 and December...

Coffee mornings top list of most popular fundraising events, report shows

26 Feb 2015

Coffee mornings are the most popular ways for supporters to raise money for charity, according to new...

Former Citizens Advice chief David Harker dies

3 Mar 2015

David Harker, former chief executive of Citizens Advice, passed away yesterday on his birthday after a...

Former Science Museum chair announced as British Heart Foundation's next chair

3 Mar 2015

Amazon China president, Douglas Gurr, has been appointed as the new chair of the British Heart Foundation...

Commission 'concerned' about charities that ignore Lobbying Act

2 Mar 2015

The Charity Commission’s director of policy and communications, Sarah Atkinson, has warned charities...

Daniel Phelan dies, aged 58

13 Feb 2015

Daniel Phelan, owner and editor-in-chief of Civil Society Media, passed away on Wednesday following a...

LinkedIn launches matching service to bring charity volunteering opportunities to 250,000 members

6 Feb 2015

Charities in the UK will be able to advertise volunteer opportunities to 250,000 LinkedIn members who...

Free guide to Bitcoin donations produced for charities

5 Feb 2015

Two Bitcoin organisations have launched a website and free guide to promote the use of the digital currency...

Join the discussion

 Twitter button

@CSFinance