Membership organisation Social Enterprise UK (SEUK) has welcomed a government consultation that is scrutinising current tax rules, but stressed that the new rules should apply to social enterprises.
Under the current rules, some social enterprises are excluded from tax relief, but SEUK is calling upon the government to make changes that would see all organisations benefitting from the scheme.
Peter Holbrook, chief executive of SEUK said, “With our members we have long campaigned for Social Investment Tax Relief – now the devil’s in the detail to ensure that as many social enterprises as possible benefit from the new rules.”
He added, “This rare opportunity to lever private capital into the social sector must not be wasted in the current financial climate and may not cross our paths again for many years to come.”
The consultation, which was overseen by the Chancellor, George Osborne, was launched in June and was completed on Friday. It set out to create a system whereby investees could enjoy tax relief, but stresses the importance of a system that “should not create substantial additional avoidance opportunities or expose social enterprises to undue risk.
Holbrook said, “We have been encouraged by the Government’s approach to these proposals and the way in which they have engaged the social sector. We must now wait and hope that The Treasury and The Department for Business, Innovation and Skills have taken on board the needs of social enterprises.”