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Social investment tax relief ‘could pose risk to gift aid’

A new social investment tax relief could pose a risk to gift aid if it is set at a higher rate than wealthy donors can recoup from making a donation, the Charity Finance Group has warned.

In its response to a government consultation on the proposed SITR, which closed earlier this week, the CFG said the rate of relief available to investors should be lower than the top rate of tax relief.

The government has committed to introducing SITR in the next finance bill and published draft legislation for consultation. The relief will offer an income tax rebate to those making unsecured investments in asset-locked bodies – charities, community interest companies and community benefit societies – and in social impact bonds.

The government is still considering the level of relief which is offered.


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