Cazenove Capital is pleased to welcome the announcement that Social Investment Tax Relief (SITR) has been extended until April 2023 as part of the government’s Spring Budget unveiled by UK Chancellor Rishi Sunak on 3 March 2021.
SITR was introduced by HM Treasury in 2014 to unlock and direct private capital into social enterprises and charities in the UK and Cazenove Capital has been among those requesting an extension to SITR by two years. The firm will continue to work with UK government and the third sector to ensure that SITR is reshaped to stimulate long-term growth in this vital market that has the potential to significantly improve many people’s lives and to help boost the UK economy.
Lyn Tomlinson, Head of Impact and Philanthropy, Cazenove Capital, said:
"We are delighted to see that SITR has been extended until April 2023, following an appeal to the HM Treasury. It’s a significant milestone that the UK Chancellor will continue to support social enterprises by extending the tax relief , which was due to end next month, for an additional two years.
“Our private clients were early investors in a number of social investment tax relief funds, however the broader take up of SITR has been muted for a number of reasons highlighted during a consultation in 2019.
“We see SITR as one of a number of ways Government can effectively support the social sector which delivers positive outcomes to the most vulnerable groups in the UK.
“We believe that encouraging private capital to invest into this vital and diverse sector is an important part in ensuring we can rebuild a better and fairer society for all as we recover from the pandemic.”
In November 2020 Schroders and Big Society Capital (BSC) joined forces to launch Schroder BSC UK Social Impact Trust plc. This investment trust is designed to address significant social challenges in the UK by funding high impact housing, debt for social enterprises and capital for expert social sector providers to deliver government contracts which achieve better life outcomes for vulnerable people.
This year Schroders has partnered with the Social Business Trust (SBT) to support social enterprises with high growth potential. Schroders’ Group Chief Executive, Peter Harrison will also join SBT’s Investment Committee.