HMRC has confirmed that Shotley Heritage is eligible for 3 types of tax relief in this share issue:
SEIS (Seed Enterprise Investment Scheme) worth 50% of the investment value
EIS (Enterprise Investment Scheme) worth 30% of the investment value
SITR (Social Investment Tax Relief) worth 30% of the investment value
Here’s how it would work:
Chris invests £10,000 in this share issue. The relief available is £5,000 (£10,000 at 50%). The amount owed in tax by Chris for this tax year (before relief) is £15,000 which she can reduce to £10,000 as a result of her investment. She might prefer to back-date that relief to the 2016 -17 tax year, or claim it in a future tax year within the time limit.
The community shares went on sale on Thursday June 1, on the Crowdfunder website www.crowdfunder.co.uk/shotley-pier.
The minimum investment of £50 will secure two shares, and the maximum investment allowed by any one investor is £10,000.
Pledges of £39,000 had already been received by the Shotley Heritage Community Benefit Society, with a £1 for £1 match-funding of up to a total of £65,000 offered by the Power To Change Booster Programme. These match shares will be held by Co-operatives UK, a partner in the Community Shares Unit, and will be subject to the same terms and conditions as other members, except for its right to withdraw share capital, which will be restricted to a pro rata amount.
Sally Chicken, chair of the Shotley Heritage Community Benefit Society, said “People who invest should do so for community reasons, this is not primarily a financial investment, as there will be no dividends. HMRC allow tax relief for new start -ups in stringently limited circumstances to encourage people to invest and get at least some advantage through tax relief. It’s a very welcome approach by HMRC. We welcome small purchases from £50 to ensure that everyone can take part in this unique community business.”
The share offer closes on July 14, 2017, and the pier group’s Crowdfunder site offers a range of rewards for investors, including the chance to taste our bespoke rum, insert the final rivet, enjoy a personalized boat trip, or take a VIP flight over the pier.
“This is a fabulous opportunity for the community and other backers from further afield, to take ownership of this Victorian pier, which is steeped in history,” said Pier project founder member and Babergh District councillor Derek Davis. “It is wonderful to see an idea bounced about in the Bristol Arms a couple of years ago, now taken up by villagers supported by the council and moving forward.”
Babergh District Council played a vital role by paying for a detailed survey, and then offered a £20,000 economic development grant to the newly formed community benefit society.
The group plans to bring the pier back to be used by fishermen, sightseers, birdwatchers and for small yachts to berth alongside, and for people who just want to enjoy a gentle stroll down a uniquely British pier.
Michael Evans, Strategic Director for Babergh and Mid Suffolk District Councils, said: “We are proud to be able to support the community buying and renovating Shotley Pier: this is a great example of what a community can achieve by coming together, working hard for a common cause and engaging with thousands of people along the way. The enthusiasm and professional approach of the steering group is inspiring, and we look forward to working with them in the months to come. Shotley Pier is on the way to becoming a community asset owned and enjoyed by all.”
Neil Turton, chief operating officer at Co-operatives UK, said:
“Shotley Pier is among a new generation of community owned enterprises that are bringing valuable local assets into the hands of local people. Community share issues are a pioneering way to bring finance into an enterprise while anchoring ownership and control locally. Co-operatives UK is delighted to support Shotley Pier’s share issue through our Booster programme.”
Originally known as Bristol Pier, after the Marquis of Bristol who had the pier built in 1894 in order to cash in on the expansion of the railways, especially for the mail route across from Harwich to the Netherlands.
The pier originally had a narrow gauge rail track to carry mail, and the trucks were later used by the Royal Navy to move munitions. A foot ferry operated from the pier, which has also been used by fishermen and barge owners.