What is SITR?
SITR is a state aid designed to help raise money to support the trading activity of our community benefit society. It does this by offering investors tax relief on shares they buy
How investors benefit?
Individuals making an eligible investment can deduct 30% of the cost of their investment from their income tax liability, either for the tax year in which the investment is made or the previous tax year (if 2014/15 or later). The investment must be held for a minimum period of 3 years for the relief to be retained.
If individuals have chargeable gains in that tax year, they can also defer their capital gains tax (CGT) liability if they invest their gain in a qualifying social investment. Tax will instead be payable when the social investment is sold or redeemed. They also pay no CGT on any gain on the investment itself, but they must pay income tax in the normal way on any dividends or interest on the investment
Maximum amount of SITR investment
Under EU rules governing the initial introduction of SITR, individual enterprises can only receive a certain amount of government subsidised investment. The limit is €344,827 (about £250,000) over 3 years. The exact sterling equivalent is the spot exchange rate on the date of investment.
Individual investors can invest up to £1,000,000 and can invest in more than one social enterprise. This is independent of any investments under the Seed Enterprise Investment Scheme and the Enterprise Investment Scheme which are subject to their own annual investment limits.
Can we lose the SITR?
The scheme follows a number of rules. The committee for HoTV must follow these rules to maintain the SITR.