Introduced in 2014, Social Investment Tax Relief (SITR) was designed to encourage investment into social enterprises and charities to support their trading activities. Importantly, SITR fills a gap by providing a subsidy to eligible social enterprises and charities who aren't able to access similar schemes such as the Enterprise Investment Scheme (EIS) and Seed Enterprise Investment Scheme (SEIS).

For social enterprises and charities

If you provide professional support to charities and social enterprises, SITR may enable the organisations you work with to raise smaller amounts of investment in a more cost-effective way.

For investors

If you provide professional support to individual investors, SITR may be attractive investors who are interested in supporting organisations who have a positive social impact

"SITR means investors can look after their hard-earned savings, make financial returns with a tax subsidy, and make a real difference to society by the way in which they invest. What’s not to like?"

Neil Pearson, Partner at Mills & Reeve

SITR and other tax reliefs

Tax reliefs available for investing into charities and social enterprises

There are various tax reliefs available for investing into social enterprises and charities. In addition to SITR, there is also:

  • Seed Enterprise Investment Scheme (SEIS)
  • Enterprise Investment Scheme (EIS)
  • Community Investment Tax Relief (CITR)
  • Innovative Finance ISA
  • Gift Aid

You can find information on each of these reliefs including SITR and how they compare in our Simple Guide to Tax Reliefs for Charities and Social Enterprises written by Bates Wells.

Other tax reliefs on investments into businesses

For information on how other tax reliefs on investments compare with SITR, see our factsheet for professional advisers.

"SITR effectively limits the risk of using your money to invest and address social issues, by reducing the financial impact of any loss, via favourable tax and loss relief treatments."

James Dickens, Chartered Financial Planner, Grierson Dickens

Technical guides

You can find detailed guidance and resources on some of the eligibility conditions, restrictions and limits on SITR below.

We have also developed a set of slides used for workshops giving an overview of SITR.

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