How much can I raise?

Due to State Aid conditions, there is a cap on how much you can raise using SITR

£1.5m

The total amount an organisation can raise is £1.5m over its lifetime. However, there is a cap of £290,000 within a three-year period for organisations more than 7 years old

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Using more than one relief

Organisations can generally raise investment using more than one relief but it cannot offer investors more than one relief on the same investment. 

This means that if an organisation needs to raise above the cap allowed using SITR, they can use another tax relief on the remaining amount they are raising as long as they are eligible.

Bear in mind that State Aid rules may still impact how much in total that you can raise using more than one tax relief and/or in combination with grant funding for the same investment opportunity.

Types of SITR investment available

SITR investment can be in the form of an unsecured loan, equity or a Social Impact Bond (SIB).

loan
Loan investment

Investors lend you money, which you agree to pay over a set period of time. Most loan investments are paid back with interest. SITR enables you to negotiate the terms of the investment including the interest rate. As with all types of SITR investment, there is a window of three years and one day before repayments start on the capital borrowed.

Loan investment can be raised from:

  • SITR funds
  • Crowdfunding platforms
  • A direct deal with individual investors
equity
Equity

Investors with equity have a share of the organisation. SITR can be used to raise equity investment in the form of community shares. Only organisations with certain legal structures such as a Community Benefit Society or a Community Interest Company limited by shares can offer equity with SITR. Investors with equity are not able to withdraw their shares for a minimum of three years and one day.

Equity investment can be raised from

  • Crowdfunding platforms
  • A direct deal with individual investors
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Social Impact Bond

A Social Impact Bond (SIB) is a payment-by-results contract between an organisation to deliver a service, the commissioner (for instance, a local authority) and the investors. Organisations must be an accredited Social Impact Contractor to deliver a SIB.

Investment using SITR can be raised from:

  • SITR funds
  • A direct deal with individual investors

As with other types of SITR investment, there is a window of three years and one day before repayments start.