The UK Sustainable Investment and Finance Association (UKSIF) welcomed the government’s response and draft legislation on Social Enterprise Tax Relief (SIR), which was published today. It also noted that the government had listened to UKSIF and its members and strengthened its commitment to encouraging the investment needed by businesses and charities to address social problems in the UK.
Caroline Escott, UKSIF Head of Government Relations, said:
“Social investment and social enterprises have a vital part to play in supporting the move towards a more sustainable economy, with business models that provide not only a financial return to investors but also support for local communities.
“Today’s government response on social enterprise tax relief is a positive step towards creating a policy framework which boosts social investment. We are particularly pleased to note that the government has taken into account our views – and those of our members – on issues such as: planning to expand the scope of the scheme to certain social impact bonds; raising the employee limit on eligible organisations to 500 in recognition of the fact that such organisations can be labour-intensive; reducing the list of excluded activities so that organisations focused on, for example, health and social services, are eligible for the relief; and retaining the provisions which ensure many charities are eligible for SIR.
“We hope that the government will take a joined-up approach to these issues with relevant government departments and regulators like BIS and the FCA and look forward to continuing to engage with the Treasury on social investment and related legislation in the near future.”
Read full press release here.