The short version: Community Investment Tax Relief (CITR) is a tax break for people who invest in disadvantaged communities through approved organisations called CDFIs (Community Development Finance Institutions).
How does it work?
If you invest in an approved CDFI (by buying shares, securities, or making a loan), you can claim tax relief spread over five years. The total relief can be worth up to a quarter of your investment.
What’s a CDFI?
CDFIs are organisations that provide funding to businesses and projects in disadvantaged areas. They might be community loan funds, micro finance providers, or social banks. The aim is to get money flowing into places that traditional lenders often ignore.
Is it worth it?
It depends on your situation. The tax relief is spread over time, so you need to hold the investment for the full period to get the maximum benefit. And like any investment, there’s risk involved.
Interested in social investment and want to understand the tax benefits? Talk to us about how it could work for you.
