TAX ADVANTAGES IN BUYING OUR SOCIETY SHARES
Did you know that you could reduce your tax liability bill by up to 50% of the amount that you invest in The Northumberland Arms Community Society Share offer? So you could recover up to half of the value of your investment!
As long as you are a UK tax payer (self assessment or PAYE), you are eligible for tax relief on your investment subject to HMRC rules on eligibility - as long as you leave your shares in the Society for at least three years. We have applied for advance assurance from HM Revenues and Customs (HMRC) that the shares in The Northumberland Arms are eligible for tax relief under the Seed Enterprise Investment Scheme (SEIS) and the Enterprise Investment Scheme (EIS) which are both government-backed schemes designed to encourage investment in smaller enterprises. Community owned and managed pubs like The Northumberland Arms are eligible for this tax relief.
Under the SEIS, the first £150,000 raised by the share issue will attract tax relief at 50% of the sum invested. So, provided you are a UK taxpayer, you will be able to recover up to one half of the amount you invest from HMRC in the year after The Northumberland Arms starts trading, i.e. when the society starts earning revenue. A claim to relief can be made up to 5 years after the 31 January following the tax year in which the investment was made
After £150,000 has been raised, further investment in shares in The Northumberland Arms will attract EIS tax relief of 30% of the sum invested - so get your application in early to ensure you get the full 50% tax relief!
The actual amount of tax relief you can claim will depend on your personal tax circumstances.
For example, Bethan decides to invest £10,000 in the tax year 2017-18 (6 April 2017 to 5 April 2018) in SEIS qualifying shares. The SEIS relief available is £5,000 (50% of £10,000). Her tax liability for the year before SEIS relief is £7,500 which she can reduce to £2,500 (£7,500 less £5,000) as a result of her investment.
Remember applications for tax relief are made to HMRC by you, the investor, not by The Society, and so we cannot give any guarantees. HMRC’s information site, www.hmrc.gov.uk/seedeis/ explains the application procedures but, if you are unsure, please seek professional advice.