Chancellor announces social enterprise tax break – our response

Social Finance welcomes the Chancellor’s renewed commitment to the social investment market and the consultation announcement on a new tax break for social enterprises. Evidence shows that tax incentives are key to motivating and unlocking investment. A recent report by the City of London estimated that £480m could flow into the social sector over five years from more than 225,000 households. David Hutchison, CEO of Social Finance, says that tax breaks “would level the playing field to allow social enterprises to offer the same tax advantages as for profit enterprises. Enhanced access to capital will enable them to deliver impact at greater scale and play a larger part in delivering public services”.

Social Finance believes that the simplest route would be to adjust current tax advantaged schemes to allow all regulated social sector organisations (e.g. charities, community benefit Industrial and Provident Societies and Community Interest Companies) with a range of activities and trades to benefit. We look forward to working on this initiative.

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2 Responses to Chancellor announces social enterprise tax break – our response

  1. Aunnie says:

    Reblogged this on AP Social Finance and commented:
    Breaking news in the UK:
    The budget (which was announced today) included a clause that stated
    “The Government will consult by summer 2013 on the introduction of a new tax relief to encourage investment into social enterprises. The outcome
    of the consultation will be confirmed at Autumn Statement 2013 with a view to introducing legislation in Finance Bill 2014.”
    This is great news and follow on the back of several major reports (see Tax Resources here) that have recommended changes to the tax law around social enterprises. We will see how it develops, but certainly a step in the right direction. See below for Social Finance’s view on the subject.

  2. It’s a step forward!

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