The charitable industrial and provident society CityLife is in talks with the Inland Revenue concern...
The charitable industrial and provident society CityLife is in talks with the Inland Revenue concerning tax relief on bonds investing in community projects.
It has launched the Boost City and East London Employment Bond, one of the UK's largest privately funded social investment initiatives. This aims to pump £50m into London's most deprived areas, Hackney, Tower Hamlets and Newham, creating up to 8,000 jobs, supporting existing small businesses, establishing up to 1,000 new businesses and regenerating housing and community facilities.
The bond is open to all and any money invested will be returned interest free when it matures in five years time. Money will also be leveraged from other sources, such as EU funding and other charitable organisations that match funding already raised for specific projects.
There is no tax relief for investors in the bond at present, something Boost is trying to change. The group is arguing that a gift of income forgone on an interest-free capital loan to a charity does not attract tax relief, when the equivalent physical gift of cash does.
A tax break would be a considerable incentive to investors, the group believes, as, at current interest rates, it would make the investment inflation proof.
To promote 'long-term investment'
Switching 'hard and expensive'
Smaller funds still packing a punch
To drive progress