Six years on from when SITR was first introduced, we are still discovering new ways that Social Investment Tax Relief can help social enterprises and charities raise growth capital.
Get SITR is regularly asked questions about the use of the tax relief when we don’t know the answer, our tax experts at Mills & Reeve are our first port of call.
But when Russ Bubley from social investment consultancy, I for Change, asked us whether a social enterprise could use funding raised through SITR to help finance a newly-acquired subsidiary social enterprise had us all scratching our heads!
Of course, we had to know the answer. The response we received from HMRC, which is based on a specific set of circumstances, finds that SITR funding can help support the merger of two social enterprises – where the SITR funding is needed to provide growth capital.
We’re pleased to be publishing a new guide with Mills & Reeve on this issue and would be keen to hear from organisations that have used SITR to raise investment for a subsidiary or in the process of doing so.
Commenting on the guidance, Russ said:
“For a social enterprise looking to grow, acquiring and capitalising a trading enterprise can be a great opportunity; being able to do this with SITR funds can be a game changer.”
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