Income Tax Act 2007 section 257M

The continuing to be a social enterprise requirement

Section 257M requires that the organisation must remain a social enterprise throughout the shorter applicable period, though it does not need to remain the same type of social enterprise for the entire duration.

• The organisation must qualify as a social enterprise continuously throughout the shorter applicable period
• A social enterprise includes community interest companies, community benefit societies, and charity shops or similar charitable trading entities
• There is no requirement for the organisation to remain the same type of social enterprise — it may change from one qualifying form to another
• If the organisation ceases to be a social enterprise at any point during the shorter applicable period, this requirement is breached and the tax relief may be withdrawn