Fred Blogs

Having been party to getting into a lather over the recommendation to scrap Community Interest Tax Relief in the Office of Tax Simplification Report I must give the government great credit today. Mr Osborne not only took it out of the bin, he gave it a profile and a specific mention in his speech that it has long needed. It is up to those of us who are accredited for this little known but highly effective tax relief to blow its trumpet now that it has a long (I hope) life ahead of it.

Yesterday, after detailed and testing interviews, two clients of mine were awarded loans of just under £7,000 between them. One has shown huge commitment to retraining himself late in his working life because he has a family to support. His bank, with whom he has been for over 20 years, refused him a loan. The other, trying to staighten his life out after mistakes in his teenage years, was refused not just a loan but a business account. They’ve both had valuable marketing advice from experienced business owners, a tailored session in bookkeeping, and they will continue to have support through the very difficult early years of getting an enterprise going.

Investment in Fredericks Foundation or in any other CITR accredited lender will not only give direct financial help to individuals, it will improve their self esteem and it will save all of us money by reducing State Benefits. And more than that it will give the investor a 5% return each year for 5 years.

So thanks go to the Ministers for not giving in to the urgings of their officials. Credit is not a right, it has to be earned, both in politics and business.

So, let’s create a strata of not-for-profit lenders who will reach the clients that banks are unwilling or unable to lend to. This will enable individuals in Britain’s most needy communities to start their own businesses, come off benefits, and provide for their families. Great!

 Then we will create an innovative tax relief which will encourage companies and individuals to invest  money we can then lend to these people and get tax relief for doing so. No other tax relief system like it in the world. The take-up might be a bit slow, but we’ll relax the starting rules, and …look… organisations like Fredericks can become accredited and use that money for good. We’re motoring now!

No we’re not, because just when the scheme was  taking off, some bright spark from Office of Tax Simplification recommended to the Chancellor that Community Investment Tax Relief be dropped in the next Budget.

At this point, we have to use words very carefully, lest they cross the decency line; but this is surely mindless vandalism on a massive scale. If this Government wanted to strangle individuals ability to become entrepreneurs (and they surely do not) they could hardly have found a surer way to do it.

There is still time to lobby your MP, the Chancellor, and anyone of influence. Make no mistake about it – Community Investment Tax Relief enables investment in your community, creating jobs and businesses where they are needed most

For more info, please follow

http://www.cles.org.uk/yourblogs/dont-scrap-citr-just-when-its-needed-most/