Our North West Social Investment Tax Relief Fund is the third of a number of regionally focused funds that Resonance is launching over the next few years, investing in social enterprises in specific regions around the country.
The Resonance Bristol SITR Fund has now raised £2.85m of its £5m target raise, has made eight investments so far and has recently published its second annual social impact report.
The West Midlands Fund, which was launched early in 2018, has now raised £1.3m of its £5m target raise, and has already made its first three investments.
Social Investment Tax Relief (SITR) was introduced by Government in April 2014 to encourage investment into social enterprises – that is, businesses dedicated to generating social impact and addressing social issues. It offers similar tax reliefs to those available through the well-established Enterprise Investment Scheme (EIS), which already offers tax relief to those investing in unquoted private companies. You can claim back 30% of the amount invested into a qualifying social enterprise against your income tax bill, either in the year the investment is made, or carried back against the previous year. SITR also makes investment more accessible for social enterprises, enabling them to access the growth capital they need more affordably.
Our experience is showing that there is a real opportunity for these investment funds to address poverty and inequality in our cities where deprivation and wealth exist in close proximity.
For further information and examples of the kind of North West based social enterprises the Fund will invest in, please download the Executive Summary here.
Investment Proposition Key Facts:
Who you loan to: PORTFOLIO OF SOCIAL ENTERPRISES IN THE NORTH WEST
Impact: DISMANTLING POVERTY IN THE NORTH WEST
Target Fund Size: £5m
Expected Returns: 7-8% post tax relief (12% gross equivalent)
Term: 6 - 8 years
Assets: Unsecured loans to social enterprises
Open for Investment: ACCEPTING COMMITMENTS IN PRINCIPLE ONLY