{"id":272,"date":"2018-11-08T15:32:12","date_gmt":"2018-11-08T15:32:12","guid":{"rendered":"https:\/\/swoopfunding.com\/au\/?p=272"},"modified":"2024-03-27T14:09:39","modified_gmt":"2024-03-27T14:09:39","slug":"investment-and-social-enterprises","status":"publish","type":"blog","link":"https:\/\/swoopfunding.com\/au\/blog\/investment-and-social-enterprises\/","title":{"rendered":"Investment and Social Enterprises"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">What sets social enterprises apart from charities and limited companies is their focus on profit with a social impact. This more conscious approach to business can attract investors looking to support a cause close to their heart, albeit with a commercial gain. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">Social enterprises are set up as Community Interest Company (CIC). A CIC is a special form of limited company with an \u2018asset lock\u2019 \u2013 an agreement to use assets only for social objectives and has limits on shareholder payments.\u00a0<\/span><span style=\"font-weight: 400;\">As such, to help encourage investment, HMRC have a separate scheme &#8211; The Social Investment Tax Relief (SITR).<\/span><\/p>\n<h4><b>Social Investment Tax Relief (SITR)<\/b><\/h4>\n<p><span style=\"font-weight: 400;\">Having some similarities to the SEIS and EIS schemes, the major difference is that SITR allows for debt investment. The key features of this tax relief are:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">30% tax relief for investors<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Maximum amount that can be raised is \u20ac344<\/span><span style=\"font-weight: 400;\">,<\/span><span style=\"font-weight: 400;\">827 or close to \u00a3250k*<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Investment must be for 3 years<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Investment must be spent within 28 months of the date of investment <\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">The social enterprise cannot be controlled by another company<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">The company must not have more than \u00a315 million in assets before the investment<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">If the company owns subsidiaries these also have to be qualifying<\/span><\/li>\n<\/ul>\n<h4><b>Are you eligible?<\/b><\/h4>\n<p><span style=\"font-weight: 400;\">As with EIS and SEIS, you can <\/span><a href=\"https:\/\/public-online.hmrc.gov.uk\/lc\/content\/xfaforms\/profiles\/forms.html?contentRoot=repository:\/\/\/Applications\/CorporationTax\/1.0\/VCSAA&amp;template=VCSAA.xdp\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">apply for advance assurance<\/span><\/a><span style=\"font-weight: 400;\"> with HMRC to make sure you are eligible, as long as you have a named potential investor or an undertaking that an agent is seeking investment for you.<\/span><\/p>\n<h4><b> For investors<\/b><\/h4>\n<p><span style=\"font-weight: 400;\">As with EIS and SEIS there are no capital gains tax charges for any profits made from this type of investment. You can also defer capital gains tax liabilities if you invest your gains in qualifying social investment.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">*You might be wondering why Euros are being quoted; until Brexit is completed the scheme comes under rules regarding state aid to charities and social enterprises. Therefore, whatever the exchange rate will be at investment the Stirling figure can change.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>What sets social enterprises apart from charities and limited companies is their focus on profit with a social impact. This more conscious approach to business can attract investors looking to support a cause close to their heart, albeit with a commercial gain. Social enterprises are set up as Community Interest Company (CIC). A CIC is [&hellip;]<\/p>\n","protected":false},"author":14,"featured_media":3974,"comment_status":"closed","ping_status":"closed","template":"","category":[1359],"class_list":["post-272","blog","type-blog","status-publish","has-post-thumbnail","hentry","category-funding-resources"],"acf":[],"featured_image_urls_v2":{"full":["https:\/\/swoopfunding.com\/au\/wp-content\/uploads\/sites\/4\/2018\/12\/rawpixel-1064367-unsplash-1-768x462-1.jpg",768,462,false],"thumbnail":["https:\/\/swoopfunding.com\/au\/wp-content\/uploads\/sites\/4\/2018\/12\/rawpixel-1064367-unsplash-1-768x462-1-150x150.jpg",150,150,true],"medium":["https:\/\/swoopfunding.com\/au\/wp-content\/uploads\/sites\/4\/2018\/12\/rawpixel-1064367-unsplash-1-768x462-1-300x180.jpg",300,180,true],"medium_large":["https:\/\/swoopfunding.com\/au\/wp-content\/uploads\/sites\/4\/2018\/12\/rawpixel-1064367-unsplash-1-768x462-1.jpg",768,462,false],"large":["https:\/\/swoopfunding.com\/au\/wp-content\/uploads\/sites\/4\/2018\/12\/rawpixel-1064367-unsplash-1-768x462-1.jpg",768,462,false],"1536x1536":["https:\/\/swoopfunding.com\/au\/wp-content\/uploads\/sites\/4\/2018\/12\/rawpixel-1064367-unsplash-1-768x462-1.jpg",768,462,false],"2048x2048":["https:\/\/swoopfunding.com\/au\/wp-content\/uploads\/sites\/4\/2018\/12\/rawpixel-1064367-unsplash-1-768x462-1.jpg",768,462,false],"image_blog":["https:\/\/swoopfunding.com\/au\/wp-content\/uploads\/sites\/4\/2018\/12\/rawpixel-1064367-unsplash-1-768x462-1-408x252.jpg",408,252,true],"image_blog_full":["https:\/\/swoopfunding.com\/au\/wp-content\/uploads\/sites\/4\/2018\/12\/rawpixel-1064367-unsplash-1-768x462-1.jpg",768,462,false],"image_podcast":["https:\/\/swoopfunding.com\/au\/wp-content\/uploads\/sites\/4\/2018\/12\/rawpixel-1064367-unsplash-1-768x462-1-397x298.jpg",397,298,true],"image_banking":["https:\/\/swoopfunding.com\/au\/wp-content\/uploads\/sites\/4\/2018\/12\/rawpixel-1064367-unsplash-1-768x462-1-33x20.jpg",33,20,true],"image_blog_internal":["https:\/\/swoopfunding.com\/au\/wp-content\/uploads\/sites\/4\/2018\/12\/rawpixel-1064367-unsplash-1-768x462-1.jpg",768,462,false],"image_blog_medium":["https:\/\/swoopfunding.com\/au\/wp-content\/uploads\/sites\/4\/2018\/12\/rawpixel-1064367-unsplash-1-768x462-1.jpg",768,462,false],"image_single_banking":["https:\/\/swoopfunding.com\/au\/wp-content\/uploads\/sites\/4\/2018\/12\/rawpixel-1064367-unsplash-1-768x462-1-80x48.jpg",80,48,true]},"post_excerpt_stackable_v2":"<p>What sets social enterprises apart from charities and limited companies is their focus on profit with a social impact. This more conscious approach to business can attract investors looking to support a cause close to their heart, albeit with a commercial gain. Social enterprises are set up as Community Interest Company (CIC). A CIC is a special form of limited company with an \u2018asset lock\u2019 \u2013 an agreement to use assets only for social objectives and has limits on shareholder payments.\u00a0As such, to help encourage investment, HMRC have a separate scheme &#8211; The Social Investment Tax Relief (SITR). Social Investment&hellip;<\/p>\n","category_list_v2":"<a href=\"https:\/\/swoopfunding.com\/au\/category\/funding-resources\/\" rel=\"category tag\">Funding resources<\/a>","author_info_v2":{"name":"fabiocalheirosuk","url":"https:\/\/swoopfunding.com\/au\/author\/fabiocalheirosuk\/"},"comments_num_v2":"0 comments","_links":{"self":[{"href":"https:\/\/swoopfunding.com\/au\/wp-json\/wp\/v2\/blog\/272","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/swoopfunding.com\/au\/wp-json\/wp\/v2\/blog"}],"about":[{"href":"https:\/\/swoopfunding.com\/au\/wp-json\/wp\/v2\/types\/blog"}],"author":[{"embeddable":true,"href":"https:\/\/swoopfunding.com\/au\/wp-json\/wp\/v2\/users\/14"}],"replies":[{"embeddable":true,"href":"https:\/\/swoopfunding.com\/au\/wp-json\/wp\/v2\/comments?post=272"}],"version-history":[{"count":1,"href":"https:\/\/swoopfunding.com\/au\/wp-json\/wp\/v2\/blog\/272\/revisions"}],"predecessor-version":[{"id":34246,"href":"https:\/\/swoopfunding.com\/au\/wp-json\/wp\/v2\/blog\/272\/revisions\/34246"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/swoopfunding.com\/au\/wp-json\/wp\/v2\/media\/3974"}],"wp:attachment":[{"href":"https:\/\/swoopfunding.com\/au\/wp-json\/wp\/v2\/media?parent=272"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/swoopfunding.com\/au\/wp-json\/wp\/v2\/category?post=272"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}