1. Melanie Mills, Social Sector Engagement Director @Mel_BigSocCapMM

2. What is it?
Why do we need it?
Who can use it?
What can you use it for?
Where do I get the money from?

3. What is Social Investment Tax Relief?

4. What is it?
It’s a way in which social enterprises can raise funds by way of investment, and offer their investors tax relief
Designed to help fill the “funding gap” for social enterprises
Works like this:
Individual invests money into a social enterprise by way or shares or debt
Individual claims tax relief on the amount invested
The social enterprise applies the funds in a trading activity
After three years (or longer) the investment is sold or repaid

5. Why Do We Need It?
31% of 600 charities surveyed by NPC said that ‘more funding’ was the greatest challenge in helping them to create more impact
EIS and SEIS already exist for SMEs – so SITR gives charities and socent an equivalent tax relief
73% of HNWI said tax relief would be an incentive to invest
Patient risk capital and can help to fill the funding gap highlighted by SEUK
And works on shares - ;like community shres or CIC shares or debt for unsecured investment

6. Who Can Use it? Charities – can be a trust or a company
Community Interest Companies – by share or guarantee
Community Benefit Societies – not be a social landlord
Accredited Social Impact Contractor (typically a special purpose vehicle that will issue social impact bonds to raise finance for a particular project)
Other than social impact contractors, these are all forms of organisation which:
Are overseen by a regulator (other than HMRC), and
Are subject to asset locks and restrictions on paying out profits to members
Has less than 250 employees AND Less than £15m assets

7. How much can you raise? Two Tier System
Eligible organisations more than 7 years old
£290K in any rolling three year period. Any “de minimis” State Aid received by the social enterprise during the previous three years (including any previous SITR funding) will count towards that £290K limit
Eligible organisations less than 7 years old
£1.5m under SITR over its lifetime However there are two key restrictions on this new £1.5m limit: Any “risk finance state aid” previously received by the social enterprise will count towards that £1.5m limit.

8. Essential Guide to SITR

9. The Naughty List! MUST BE USED TO SUPPORT A TRADING ACTIVITY
Any trade can be supported with SITR except:
Dealing in land, commodities or futures or in shares, securities or other financial instruments
Banking, insurance, money lending debt-factoring, hire-purchase finance or other financial activities including refinancing existing loans
Property development
Energy
Leasing, licensing and assets on hire
Agriculture and fishery
Road freight transport
Providing services or facilities to another business where that other business would not qualify for SITR
Described in the 6 questions as What you can use it for!

10. How do I know if I can use SITR?
Pre-assurance Process
The process of applying to HMRC to get approval that SITR will be available to your investors
Takes 6 weeks
Answer all the questions as the assurance is only valid based on the information you did provide (not what you didn’t!)
Webinar, guide and slides to help
COMING SOON
Editable Pre-assurance application form
Described in the 6 questions as What you can use it for!

11. CASE STUDIES MM

13. FREEDOM BAKERY

14. The Spotted Cow www.thespottedcowholbrook.co.uk Challenge
Revenue model
Impact
Key Statistics
Pubs are closing down at an average of two per week in the UK. The Spotted Cow in Holbrook, Derbyshire, recently closed and was due to be converted to housing, depriving local residents of a valuable community asset. 
Investment via community shares eligible for Social Investment Tax Relief(SITR) was raised on Crowdfunder. This was matched by Crowd Match Fund and repaid with income of the pub and Post Office. 
The Spotted Cow serves over 1,500 residents and hosts book clubs and events and is home to the village Post Office, a First Aid responder and a meals on wheels service for older people.
Duration: 3 years (min)
Cost of capital: 3%
Turnover: £100,000
Investment: £277,000

16. HELP & SUPPORT MM

20. READ WATCH READY TO PROCEED? How Do you Find Out More ?
Sign up for more information on the Social Investment Tax Relief.
do/current-projects/social-investment-tax- relief/get-sitr
Sign the sheet for GDPR coming around
New video with Breadshare coming soon – SITR made simple!