What is your organisation’s legal structure?

How many full-time equivalent (FTE) employees does your organisation have?

What is the total value of your organisation's assets?

Does your organisation's trade consist more than 20% of any of the following:

  • Energy generation
  • Leasing or letting assets on hire
  • Receipt of royalties or license fees
  • Property development
  • Managing or operating nursing homes or residential care homes
  • Money-lending or other financial activities
  • Being a landlord

How long ago was your organisation founded?

Good news, it looks like you may be eligible to use SITR to raise up to £1.5m over the lifetime of the organisation. To get started, see the different ways available to raise SITR investment.

Good news, it looks like you may be eligible to use SITR raise up to £290k over a three year period (and up to £1.5m over a lifetime). To get started, see the different ways available to raise SITR investment.

Unfortunately, it looks like your organisation may not be eligible to use SITR. This is because only regulated forms of social enterprise and charities are currently eligible to use SITR.

  • If you’d like to be kept up to date about any future changes to SITR, sign-up to our newsletter
  • To learn about other types of social investment that may be available to you, visit Good Finance

Unfortunately, it looks like your organisation may not be eligible to use SITR. This is because tax reliefs such as SITR are designed to help smaller organisations access risk finance and your organisation sits above the current threshold for SITR.

  • If you’d like to be kept up to date about any future changes to SITR, sign-up to our newsletter
  • To learn about other types of social investment that may be available to you, visit Good Finance

Whilst most trading activities qualify for SITR, a trade doesn't qualify if it consists wholly, or substantially, of excluded activities. HMRC will normally accept this to be no more than 20% of your turnover. You can see a full list of excluded activities and additional guidance in our FAQs.

  • If you would like to discuss this in more detail, you can also book a 1:1 SITR surgery or ask us a question
  • If you’d like to be kept up to date about any future changes to SITR, sign-up to our newsletter
  • To learn about other types of social investment that may be available to you, visit Good Finance
Eligibility criteria

There are a number of organisation and trading conditions that must be met for an investment to be eligible for SITR. 

Governance & organisation size
Governance: legal structure
Legal structure

The organisation seeking investment must be one of the following:

  • Registered charity
  • Community Interest Company (CIC)
  • Community Benefit Society or Charitable Community Benefit Society
  • An accredited social impact contractor
Size of organisation
Size of organisation

The organisation seeking investment must have less than 250 employees AND less than £15m in assets

Ownership and subsidiaries
Ownership and subsidiaries

Only 'parent' organisations can use SITR to raise investment and all its subsidiaries must be a 'qualifying subsidiary'. This means every subsidiary must meet all the following conditions:

  • at least 51% owned by the parent organisation
  • under the ultimate “control” of the parent
  • not under the “control” of any other person
Alternative-loan note
Raising SITR for a subsidiary

If your social enterprise is a subsidiary, your parent organisation can raise investment for your subsidiary as long as:

  • the parent organisation owns at least 90% of the subsidiary
  • your enterprise meets the eligibility criteria (e.g. is one of the eligible legal structures and its trade doesn't consist wholly or substantially of excluded activities)

If the parent organisation is concerned about using SITR to raise investment for a subsidiary, it may be possible to ringfence the risk to that subsidiary using an alternative loan structure.

Trading activities

Most trading activities qualify for SITR investment. But a trade doesn't qualify if it consists wholly, or substantially, of excluded activities.

Excluded trading activities
Excluded trading activities

Key activities that are on the list of excluded trading activities:

  • Energy generation
  • Leasing or letting assets on hire
  • Receipt of royalties or license fees
  • Property development
  • Managing or operating nursing homes or residential care homes
  • Banking, insurance, money-lending or other financial activities
  • Being a landlord*

*Taking rent is not considered a trading activity under SITR so does not qualify

20%
20% rule

If your organisation has more than one trading activity, you may carry out some excluded trading activities and still qualify for SITR but they must not amount to a ‘substantial part’ of the trade as a whole. HMRC will normally accept this to be no more than 20% of your turnover.

Investors

Only individual investors can benefit from the tax relief. Individual investors can be sourced either directly or indirectly via a SITR fund of crowdfunding platform.

Individual investors

For an individual investor to be eligible for the tax relief, they:

  • must not own more than 30% or have a material interest in the social enterprise or charity
  • must not become an employee, trustee or director of the social enterprise or charity
Get in touch

Still got a question? Check out our FAQs.

We also hold a range of events including webinars, workshops and 1:1 surgeries. You can also ask us a question directly!