The Tax Relief for Social Investments (Accreditation of Social Impact Contractor) (Amendment) Regulations 2015

Statutory Instruments

2015 No. 2051

Income Tax

The Tax Relief for Social Investments (Accreditation of Social Impact Contractor) (Amendment) Regulations 2015

Made

16th December 2015

Laid before the House of Commons

17th December 2015

Coming into force

9th January 2016

The Treasury, in exercise of the powers conferred by sections 257JE and 257JF of the Income Tax Act 2007(1), make the following Regulations:

Citation and commencement

1.  These Regulations may be cited as the Tax Relief for Social Investments (Accreditation of Social Impact Contractor) (Amendment) Regulations 2015 and come into force on 9th January 2016.

Amendment

2.  These Regulations amend the Tax Relief for Social Investments (Accreditation of Social Impact Contractor) Regulations 2014(2)(“the 2014 Regulations”).

Regulation 2 of the 2014 Regulations

3.  In regulation 2 (interpretation), in the definition of “defined outcomes”, for “regulation 3(b)” substitute “regulation 3(1)(b)”.

Regulation 3 of the 2014 Regulations

4.—(1) In paragraph (1)(f) of regulation 3 (criteria for social impact contracts)—

(a) omit “the contract must provide for”; and

(b) for “to be assessed” substitute “must be assessed”.

(2) In paragraph (1)(g), omit “seeking accreditation”.

Regulation 6 of the 2014 Regulations

5.  For paragraph (e)(ii) of regulation 6 (publication of information) substitute—

“(ii) the services provided, or to be provided, by the contractor in respect of each social impact contract to which the contractor is, or was, a party.”.

Regulation 7 of the 2014 Regulations

6.  For regulation 7 (requirements of accreditation) substitute—

“7.— (1) A social impact contractor must comply with the matters in paragraphs (2) and (3) as conditions of its accreditation.

(2) The social impact contractor must ensure that there is no period during the period of its accreditation when it is not a party to at least one social impact contract.

(3) The social impact contractor—

(a) must give notice to the Minister of the Cabinet Office within 30 days of—

(i) any material change in respect of each social impact contract to which it is a party, including the termination of, or an alteration of the defined outcomes set out in, the contract, or

(ii) any change of its name or business address, and

(b) must provide a relevant report to the Minister of the Cabinet Office in respect of—

(i) each period of 12 months since the date of accreditation, within one month of the end of each such period, and

(ii) such other period and by such date after the expiry of that period as the Minister may by notice reasonably require.

(4) In paragraph (3), “relevant report” means a report setting out such information as the Minister may by notice specify concerning the performance of the social impact contractor under each social impact contract to which it was a party during the period to which the report relates.

Provision of information

7A.— (1) The Minister of the Cabinet Office may give notice to an accredited social impact contractor to require that person to provide such information as is specified in the notice.

(2) The information which may be included in the notice is information which the Minister believes is reasonably required in connection with the discharge of the Minister’s functions under section 257JD or 257JG of ITA 2007.

(3) A notice under paragraph (1) must include the date by which the information must be provided, being a date no earlier than 14 days after the date on which the notice is given.

(4) It is a condition of an accreditation that an accredited social impact contractor must comply with a notice given to it under paragraph (1).”.

Amendment of regulation 10 of the 2014 Regulations

7.—(1) Regulation 10 (appeals against refusal to grant accreditation or withdrawal of accreditation) is amended as follows.

(2) In paragraph (2), for “notification” substitute “notice”.

(3) In paragraph (4), for “notified” substitute “made”.

David Evennett

Mel Stride

Two of the Lords Commissioners of Her Majesty’s Treasury

16th December 2015

EXPLANATORY NOTE

(This note is not part of the Regulations)

The Regulations amend the Tax Relief for Social Investments (Accreditation of Social Impact Contractor) Regulations 2014 (S.I. 2014/3066) (“the 2014 Regulations”). The amendments made to regulations 3, 6 and 7 of the 2014 Regulations allow contractors to enter into more than one social impact contract under the same accreditation where the contractor’s investors wish to claim tax relief under Part 5B of the Income Tax Act 2007 (c. 3) (the social investment tax relief scheme). Regulation 7 of the 2014 Regulations has been split into regulation 7 (to include the provision in respect of 12 monthly reports) and regulation 7A (to include the provision for the Minister to obtain information on notice).

Consequential amendments are made, and minor errors are corrected, to other regulations of the 2014 Regulations.

A Tax Information and Impact Note has not been prepared for this Instrument as it contains no substantive changes to tax policy.

(1)

2007 c. 3; sections 257JE and 257JF were inserted by Schedule 11 to the Finance Act 2014 (c. 26).

(2)

S.I. 2014/3066.