Ethex offers last chance SITR-eligible investment
Ethical peer-to-peer lender Ethex is offering investors a final chance to claim social investment tax relief (SITR) against one of its investment bonds.
Despite campaigns from several groups to save it, SITR is due to come to an end at the close of the 2022/23 tax year on 6 April.
The Ethex investment bond offer for Aero Space Kinross (ASK) is SITR or IFISA eligible and targets a 5 per cent return.
ASK is looking to fund an immersive visitor attraction and education hub themed on flight and space exploration in Scotland.
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SITR is a tax incentive for investors, designed to help social enterprises and community businesses to raise investment.
Investors can claim personal tax reliefs through the scheme, including income tax relief of up to 30 per cent of the amount invested.
At least 76 organisations have used SITR to raise more than £14m, according to the Get SITR website. Investments using SITR ranged from £1,230 to £1.4m.
However, in 2019 the government announced a review of SITR and decided to wind down the scheme. It was originally due to finish in 2021 but granted an extension to 2023. It now looks set to cease at the end of this tax year.
Read more: Ethex returned £2.6m in interest this year
In a blog on the move yesterday, Ethex said: “We’re very sorry to see the end of SITR, as any additional incentives to help people invest in extraordinary grassroots community groups or social enterprises to enable them to get the money they need to thrive are much needed.
“However, we will continue to bring these impactful investment opportunities to our community of positive investors and look to utilise as many other tax reliefs as possible in order to make these investments more attractive.”
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