PARLIAMENTARY WRITTEN QUESTION
(17 April 2025)

To ask the Chancellor of the Exchequer, what assessment she has made of the potential merits of extending eligibility for the Enterprise Investment Scheme tax relief to people investing in community assets that are leased and operated by community groups but owned by commercial landlords.

Asked by:
Dr Simon Opher (Labour)

The venture capital schemes, including the Enterprise Investment Scheme (EIS), are intended to incentivise investment into early-stage, higher-risk companies that are seeking to make profit, and to grow and develop their businesses. To ensure that the schemes are targeted at higher risk companies which face the greatest difficulties in accessing finance, and to provide value for money to UK taxpayers, certain lower-risk activities are excluded, including the leasing of land.

The Government supports community investment in other ways. For example, the Community Investment Tax Relief (CITR) stimulates private investment in disadvantaged communities. It provides a tax incentive to individuals and companies that invest in accredited Community Development Financial Institutions (CDFIs), which in turn invest in enterprises located in or serving those communities. In 2022/23, CITR accredited CDFIs raised over £11m of investment and made 355 loans worth over £20m to enterprises located in disadvantaged communities.

Answered by:
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