CITR Campaign
Community Investment Tax Relief campaign a resounding success!
25 March 2011
In the Budget speech on 23rd March George Osborne announced:
“In July last year, we set up the Office of Tax Simplification to provide independent advice on how to reduce the complexity of the existing system. Following their recommendations, I can announce today that this Budget abolishes no fewer than 43 complex reliefs. I have decided not to follow their advice to abolish the Community Investment Tax Relief – and instead I encourage people to take it up.”
Osborne’s announcement signals strong Government support for the CDFI sector despite of previous recommendations for CITR to be abolished. Work now begins on devising a scheme which will encourage greater investment in CITR by interested individuals and corporate bodies.
A big thank you to all those who supported our campaign. This would have not been possible without a strong and unified voice.
For more details on the tax relief, visit our CITR page
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Campaign history
February 2011
On the back of recent government momentum and developments in the Social Investment market, CDFA is launching an email and letter campaign to encourage lobbying on the extension and improvement of the Community Investment Tax Relief (CITR) Scheme.
CITR is devised to encourage private investment into Community Development Finance Institutions (CDFIs), which are social enterprises providing finance to businesses denied bank credit.
CITR has helped raise nearly £70 million of affordable credit for businesses and social enterprises since 2003. The scheme’s state aid exemption finishes in 2012 and is currently under review by HM Treasury to decide its whether the government will apply for an extension. We understand a decision will be announced around the time of the Budget.
The campaign has two objectives:
1) Recertify CITR (or similar tax relief scheme) when it expires in 2012 to incentivise private investment to CDFIs
2) Adapt and improve the current scheme to allow for greater success.
The CDFA has written bespoke letters to key politicians, members, stakeholders to build momentum and raise the profile of the issue before the scheme is due for review in 2012.
We call on all members, supporters and stakeholders to join with us and lobby their local MPs. Momentum has already begun with the Early Day Motion 1214 Taxation Relief and Investors in Social Enterprises tabled by Sheila Gilmore MP (Lab, Edinburgh). Please encourage your MP to sign this motion.
If anyone wishes to join the campaign there is a template letter is attached below for your reference. They may be used with little amendment, but even more powerful would be through revelations of your own experiences in raising private capital where applicable. In addition, a one page brief is attached highlighting the issues and the importance of establishing an improved tax relief scheme to support the sector for use in your advocacy.
It is very important that we get the kind of tax relief scheme that will really work for all CDFIs, and if we all pull together and raise our collective voices, we can succeed.
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CITR brief of suggested changes DOWNLOAD
CITR into 2012: detailed brief for HM Treasury DOWNLOAD
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PRESS Coverage and support for the CITR campaign:
Social Enterprise Magazine “Chancellor saves social investment’s only tax relief” (24th March) Read
Social Enterprise Magazine “Fight is on to save social investment’s only tax relief” (16th March) Read
Regeneration and Renewal “Tax break on investment in deprived areas ‘must be retained” (10 March) Read
Third Sector Magazine “Don’t scrap community interest tax relief, Sir Stephen Bubb tells government” (8 March) Read
Civil Society Finance “CDFA launches campaign to save community investment tax relief” (7 March) Read
Third Sector Magazine “Community interest tax relief ‘must be extended’” (2 March) Read
Read the Charity Bank’s blog on the scheme here
Read ACEVO’s CEO, Stephen Bubb’s blog here
Read Fredericks Foundation’s blog here
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