10/03
23 January 2003
What is the Community Investment Tax Relief?
John Healey MP, Economic Secretary of the Treasury, is hosting the first oneLondon Members’ Roundtable of 2003. The roundtable will provide an excellent opportunity for members and guests to discuss the Government’s programme of Community Investment Tax Relief. The event will take place at 11 Downing Street on 23 January 2003 from 4 to 5:30 pm.
The Community Investment Tax Relief is a response to an increasing demand to adopt business oriented approaches in tackling deprivation, attracting investment for under-served communities and businesses), which is fundamental to oneLondon’s core objectives, allowing communities to help themselves.
The CITR was one of the key recommendations made by the Social Investment Taskforce in October 2000 on how Government could help stimulate increased investment and economic activity in disadvantaged communities. The tax relief is based on the premise that without investment, wealth and jobs are not created. Policy discussions and initiatives in the UK are increasingly looking at ways of more accurately defining the needs of poorer communities. Investment is made in a way that creates long-term sources of wealth and increase levels of entrepreneurship.
The CITR scheme, links mainstream financial and support institutions to the needs of micro-enterprises and businesses located in poorer communities through CDFIs. It allows private and corporate investors to receive a tax relief worth 5% of the value of their investment in the initial year, and in each of the four subsequent years while the investment is held.
The CITR was incorporated into the Finance Bill 2002 and in October was cleared by the European Union to be fully implemented in Britain by the end of the financial year.
There are a limited number of places for journalists. Any journalist interested in attending should contact the Treasury Press Office on 020 7270 5238.
Notes to Editors
oneLondon is an enterprise and regeneration agency with a special focus on innovation and inclusion. Working as a membership organisation, it is a partnership of the private, public and community sectors corporate working to bring business, finance, communities and neighbourhoods together. oneLondon is a not-for-profit subsidiary of Greater London Enterprise (GLE) and its members are: BT, Cadbury Schweppes, Corporation of London, Diageo, Greater London Enterprise, Hill and Knowlton, HSBC, Lloyds TSB, London South Bank University, Marks and Spencer, St. George plc and United Biscuits