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.
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?”