Investors in SITR qualifying bonds can, depending on their individual
circumstances and the company’s compliance with the rules governing SITR, enjoy
some or all of the following tax advantages:
- Income tax relief: 30% of the amount
invested is given as a relief against income tax liability in the tax year the investment is made or in the previous
tax year;
- Capital gains hold-over relief:
payment of tax on a capital gain can be deferred
where the gain is re-invested into investments that also qualify for
SITR. The SITR
qualifying investment must be made in the period one year before or
three yearsafter the gain arose; and
- Capital gains disposal relief: an
investment which has attracted income tax relief
(that has not been subsequently withdrawn) is exempt from capital gains
tax if theinvestment is disposed of for more than the purchase price.
The investment must have been held for at least three years. Full, up to date information can be found on the HMRC website.