C3.1912 Social investment tax relief—holdover relief
Social investment tax relief (SITR) is designed to support social enterprises seeking external finance by offering a range of tax reliefs to individual investors who invest in new shares or new qualifying debt investments in those social enterprises. The relief applies for investments made on or after 6 April 2014. The main provisions regarding the conditions relating to the social enterprise and the investors can be found in Division E3.9. For HMRC guidance, see the GOV.UK website.
There are two capital gains tax reliefs available. There is a holdover relief for gains reinvested in social enterprises, and a disposal relief (see C3.1913) where the investment is subsequently disposed of after a minimum period.
Conditions for SITR holdover relief
Holdover relief is available where an individual investor has a chargeable gain, he acquires one or more assets known as the social holding, he is entitled to the social investment income tax relief (see Division E3.9) on the consideration paid for the assets under ITA 2007, Pt 5B, and the five following
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