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The voice of Scotland’s vibrant voluntary sector

Published by Scottish Council for Voluntary Organisations

TFN is published by the Scottish Council for Voluntary Organisations, Mansfield Traquair Centre, 15 Mansfield Place, Edinburgh, EH3 6BB. The Scottish Council for Voluntary Organisations (SCVO) is a Scottish Charitable Incorporated Organisation. Registration number SC003558.

Scotland’s first social investment fund to offer affordable loans to third sector

This news post is over 7 years old
 

New fund offers investors chance to invest in good causes and receive tax relief

A new win win investment fund will help both UK based investors and the Scottish third sector.

Social Investment Scotland (SIS) has set up a social investment tax relief fund which third sector organisations can apply for affordable loans from.

The fund allows investors to invest their money and receive a tax relief and charities and voluntary groups to get access to loans at a cost which would not readily be available from other finance providers.

SIS Community Capital is scheduled to launch in May with SIS hoping to attract an initial tranche of £500,000.

The money will be used to support between five and 10 social enterprises in Scotland.

Nick Kuenssberg, chairman Social Investment Scotland, said: “SIS has built up a great track record and enviable reputation throughout the UK’s social investment market, built upon its experience and expertise of delivering investment funds effectively.

Research shows that there is an unmet demand for social investment products, and SIS Community Capital is our response to that demand

“Research shows that there is an unmet demand for social investment products, and SIS Community Capital is our response to that demand.”

Tax relief for investors will be provided in the form of a 30% relief on their investment from their income tax liability. Investors will also get a financial return on their investment.

Gavin Francis, managing director, of Worthstone, a UK independent social impact investment resource for financial advisors, added: “I believe this product has the potential to change the landscape for the social investment market and will help lead the way in the UK and Europe.

“On my travels talking to hundreds of financial advisers across Scotland, England, Wales and Northern Ireland the common theme has been that at this early stage we need a social investment product which helps to manage investors' risk by offering a government blessed tax reducer with diversification of investment in enterprises which generate positive social outcomes.”

NCM Fund Services Limited, based in Edinburgh, will be responsible for ensuring compliance of all FCA regulated activities of the fund.

 

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