NCVO urges tax incentives to encourage social investment

Investors could be encouraged to make more social and charity investments with the right tax incentives, the National Council for Voluntary Organisations (NCVO) has said.

A new report from the council sets out recommendations to speed up growth in the social investment market, which it believes can play an important role in future economic growth, in addition to facilitating important social returns.

Changes to existing tax laws on community financing could help achieve this by encouraging greater levels of investment in social ventures, it claims, with gaps in the current system blamed for limiting growth and restricting access to finance for charities.

Sir Stuart Etherington, chief executive of NCVO, said: "In these challenging economic times, social investment can form part of the solution by supporting civil society organisations to become more innovative, effective and financially secure.

"Government has a real opportunity to capitalise on this potential as it seeks to build a strong and sustainable economy."

Welcoming the report, a cabinet spokesperson said that a consultation will be launched with the social investment market on how to make Community Investment Tax Relief more effective.

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