Wealth Manager - the site for professional investment managers

Register to get unlimited access to Citywire’s fund manager database. Registration is free and only takes a minute.

Autumn Statement: social impact bonds receive tax boost

Autumn Statement: social impact bonds receive tax boost

The government aims to stimulate investment in social enterprises with plans to provide tax relief on social impact bonds.

In the Autumn Statement the government said it would provide tax relief on investment in social impact bonds where the special purpose vehicle is structured as a company limited by shares.

'The government knows there is still more to do to improve the tax and legislative climate for social investment,' the Autumn Statement noted. 

As a result a road map for social investment is set to be published in January of next year, which will include seeking state aid clearance for a larger tax relief scheme, looking at options for supporting indirect investment and making changes to regulations for community interest companies to make them more attractive to investors and social organisations.

Threadneedle Investments chief executive Campbell Fleming (pictured), welcomes the development which should act as a boost to social investment. The fund manager launched a dedicated social bond fund in partnership with Big Issue Invest last week.

'We commend the chancellor’s social investment tax relief in today’s Autumn Statement,' Fleming said. 

'Having just launched a social bond fund with Big Issue Invest, we are pleased to see the government continuing to drive the revolution in social investment in the UK, encouraging individuals to invest in organisations that improve the lives of people and communities, and helping the sector become self-sustaining in the long term.'

Meanwhile ClearlySo, which helps social entrepreneurs raise capital from investors making direct social investments, applauded the news. 

The firm's head of invididual investor network, Mike Mompi, told Wealth Manager: '[The tax relief] sends a strong signal to the investment community and puts social impact investment on the map for many more HNWI and sophisticated investors than ever before.'

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.
Citywire TV
CIO Tapes 2: two warnings and a lot of optimism

CIO Tapes 2: two warnings and a lot of optimism

Our group of leading asset management CIOs see a lot of opportunities – and overseas investors are buying UK too

Play Wealth Manager Retreat 2017: size isn't everything

Wealth Manager Retreat 2017: size isn't everything

We asked our delegates at the Wealth Manager Retreat what they think about the recent wave of consolidation in the industry.

1 Comment Play CIO Tapes - part 3: 'passive funds are anti-capitalist'

CIO Tapes - part 3: 'passive funds are anti-capitalist'

Citywire recently gathered three of the UK's leading fund investment heads to discuss their hopes, fears and the issues that their jobs throw at them daily.

Read More
Your Business: Cover Star Club

Profile: Thomas Miller explains its post-restructure plans

Profile: Thomas Miller explains its post-restructure plans

Thomas Miller Investment’s (TMI) head of wealth Matt Phillips has strong opinions about many things

Wealth Manager on Twitter