SIS Community Capital: Unlocking social investment tax relief for scotland’s third sector
Social Investment Scotland
For the first time in Scotland, UK investors will be able to invest their money in a pioneering fund for social good. We’re aiming to raise £500k from UK investors by utilising the government’s new Social Investment Tax Relief scheme (SITR).
Money ‘to do good’
HMRC’s SITR scheme has been established in order to ‘unlock’ an estimated £500 million from private investors across the UK, by offering them a tax-related incentive. Recent research by Ipsos Mori also highlighted an unmet appetite for social investment amongst high-net-worth Individuals, who wanted their money to ‘do good’. SIS Community Capital is a response to that demand.
SIS Community Capital will enable us to look beyond traditional sources of investment to connect more capital with more communities across Scotland. Social enterprises, charities and community organisations will be able to take advantage of affordable loans to help them grow and continue delivering positive social impacts at a local level.
Changing the social investment landscape
Thomas Gillan, Chief Financial Officer of Social Investment Scotland, said: "As one of the first funds of its kind available to UK investors, SIS Community Capital will not only offer investors a degree of tax relief but also a chance to invest in some great organisations which are making a real difference to the lives of people and communities across Scotland."
Gavin Francis, Managing Director, of Worthstone, the UK’s leading independent social impact investment resource for financial advisors, added: "I believe this product has the potential to change the landscape for the social investment market and will help lead the way in the UK and Europe.
"On my travels talking to hundreds of financial advisers across Scotland, England, Wales and Northern Ireland the common theme has been that at this early stage we need a social investment product which helps to manage investors’ risk by offering a government blessed tax reducer with diversification of investment in enterprises which generate positive social outcomes. This is what SIS is offering to deliver and that is why SIS Community Capital will be a ground breaking milestone for social investment."