Social investment tax relief

Social investment tax relief

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Will an unpaid director of a community interest company qualify for social investment tax relief provided they comply with all the other requirements. The legislation clearly excludes 'paid directors' but the CIC in question has no paid employees so I think the directors could qualify for this.

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By bggoose1
25th Nov 2014 11:47

Agree

I haven't come across this before but logically, I agree that an unpaid director would qualify provided that he does not fall foul of any of the other tests that can prevent the relief from applying. Section 257LF ITA 2007 sets out the restrictions on employees and paid directors. Sub-section 4 sets out that if a person is remunerated they are caught and relief is denied but then sub-section 5 sets out what counts as payments that can be ignored. Therefore it must be conceived that an unpaid director would be ok otherwise sub-section 5 would be otiose.

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