Most financial advisers not confident over SITR, Aine Kelly of Big Society Capital says

A survey finds that only 14 per cent of independent financial advisers say they feel capable of talking to their clients about social investment tax relief

Aine Kelly
Aine Kelly

Charities and social enterprises could be missing out on investment because financial advisers do not feel sufficiently capable of advising high-net-worth individuals on social investment tax relief, according to the social investment wholesaler Big Society Capital.

A survey of more than 200 independent financial advisers carried out by the market research company Opinium on behalf of BSC found that only 14 per cent said they felt confident talking to clients about SITR.

SITR enables individuals to claim income tax relief of 30 per cent of qualifying investments of up to £1m a year in charities, community interest companies or community benefit societies.

According to the survey, 62 per cent of respondents said they disagreed with the statement "I feel confident I understand social investment tax relief". Twenty-two per cent said they neither agreed nor disagreed and the remainder said they did not know.

Aine Kelly, head of financial sector and investor engagement at Big Society Capital, said: "Charities and social enterprises could miss out on much-needed capital if independent financial advisers’ confidence levels around the social investment tax relief are not improved."

She said that many high-net-worth individuals wanted to make a social impact with their investments, and independent financial advisers played a key role in enabling this to happen.

"By advising their clients about social investment tax relief, more wealthy individuals can become social investors, opening up access to greater amounts of finance to the sector," she said.

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