South West SITR Fund Social Impact Report 2020/21
The Resonance South West Social Investment Tax Relief (SITR) Fund was launched in 2016, as the first in a series of regionally focused SITR Funds developed by Resonance across the UK. The Fund was designed to provide affordable growth investment opportunities for social enterprises tackling poverty and disadvantage in the South West region, whilst enabling individuals to invest for impact and utilise the Social Investment Tax Relief scheme.
The Resonance South West SITR Fund raised over £3m, which has now been fully deployed into a wide range of South-West based social enterprises. You can learn more about the Fund’s portfolio of investees, and the positive impact each is continuing to deliver, in the latest Social Impact Report.
The Fund was closed to further fundraising in 2021 following the decision by Government to not extend the SITR scheme beyond 2023.
The Social Investment Tax Relief (SITR) scheme offers tax relief to investors who invest in eligible Charities, Community Interest Companies or Community Benefit Societies. It simultaneously drives down the cost of capital for social enterprises that need funding in order to scale up the impact of their projects whilst reducing the risk for investors, as they can receive 30% of the value of their SITR qualifying investments in the form of income tax relief.
Our experience is showing that these investment funds have been a brilliant tool to help address the problems poverty of inequality in our cities, where deprivation and wealth exist in close proximity.
Some of the leading wealth managers and IFAs, whose clients have invested in the Resonance SITR Funds, are listed below.
INVESTMENT PROPOSITION KEY FACTS:
- WHO YOU LOAN TO: PORTFOLIO OF SOUTH WEST SOCIAL ENTERPRISES
- IMPACT: DISMANTLING POVERTY IN THE SOUTH WEST
- FUND SIZE: £3.1M
- EXPECTED RETURNS: 7-8% POST TAX RELIEF (12% GROSS EQUIVALENT)
- TERM: 6-8 YEARS
- ASSETS: UNSECURED LOANS TO SOCIAL ENTERPRISES
- OPEN FOR INVESTMENT: NO