Expert calls for tax relief on social enterprise investment

A leading social financier will today call on the Government to offer tax relief to social enterprise investors.

Nigel Kershaw, chief executive of Big Issue Invest, will urge the Treasury to provide mechanisms to reward those who take on risky investments during his address at the Good Deals conference on social investment.

Currently, charity donors are eligible for up to 40 per cent tax relief on their donations, and investors in small businesses can claim Enterprise Investment Scheme income and capital gains tax relief as well as Venture Capital Trust income tax relief.

“My argument is that you get Gift Aid if you donate to a charity, you can get income tax and capital gains tax relief if you buy shares in qualifying businesses, but social enterprise falls in the middle and investors get no breaks,” Kershaw said.

“While I support the Social Stock Exchange and the Social Investment Bank, I think that creating a level playing field were we can encourage private risk money into the sector is of greater importance. Why would you take risks in the sector if you can’t get rewarded for it?”

Helen Warrell recommends

Big Issue Invest

Read more

Have you registered with us yet?

Register now to enjoy more articles and free email bulletins

Already registered?
Sign in

Before commenting please read our rules for commenting on articles.

If you see a comment you find offensive, you can flag it as inappropriate. In the top right-hand corner of an individual comment, you will see 'flag as inappropriate'. Clicking this prompts us to review the comment. For further information see our rules for commenting on articles.

comments powered by Disqus