The Chancellor has announced that the proposed charity tax, which had been extended to Community Interest Tax Relief (CITR), has been dropped. Responding to the news, Social Enterprise UK Chief Executive Peter Holbrook said:

 

“This is good news. We are pleased the Government has reversed its decision. Those of us working hard to grow the UK's social investment market - and lever finance into social enterprises and trading charities - were puzzled by the Government's intention to extend the tax-relief cap to include social investment. 

“We must move on from this and concentrate our efforts on developing the UK’s social investment market in order to make capital available to social enterprises. We are very willing to help the Government deliver on its promise to review the barriers to social enterprise, made by George Osborne in the Budget.