Community Share Initiative

What is a Community Share Initiative?

Community shares are a new way of raising investment capital from communities. Local people are encouraged to buy shares in the enterprise and become part-owners. As shareholders they are more likely to do everything they can to ensure the success of the business by becoming loyal customers, volunteers and supporters of the enterprise. Community shares have been used to finance shops, pubs, community buildings, food schemes, football clubs and even renewable energy initiatives. Locally, they have been used to finance the village store at Uley and the Red Lion pub in Arlingham.

How much is a share?

Shares are available at £10 each and you can buy as many as you like up to a maximum investment of £20,000 by any one individual.

How much do we need to raise?

We raised £53,000 to help us to buy the Advent Hall and get it up and running. THere are still running costs and a mortgage,to pay so the more we raise the smaller our monthly repayments will be.

What will I get in return for my investment?

Most of all you get a village shop, a Postal Service in the future, a social hub and meeting place. Furthermore, it’s now emerged that a village shop can add value to property prices. You also get a stake in the future of your village, an increased sense of involvement in your community, and a say in how the CCS is run. Moreover, you will be part of the community spirit that makes Chalford such a special place to live.

Can I get my money back if I need it?

Anyone who buys shares should be prepared to leave their money with us for a minimum of five years. However, we do understand that circumstances change – people may move away or face other circumstances which mean they need access to their money. But so that our finances don’t collapse overnight, the maximum that will be repaid to investors in any one financial year (at least in the early years) will be limited to £5,000 overall.

Will I get a dividend each year?

Although CCS is run as a viable commercial operation, most of the profits will be re-invested into the shop itself. When profits are high, we expect to be able to offer shareholders a small dividend, but investing in CCS is not about expecting a significant financial return on your investment. It is an investment in the village.

Can I set my investment in CCS against my personal tax allowance this year?

Under the Enterprise Investment Scheme (EIS) Income tax relief is available to individuals. It will be up to individuals to verify their personal entitlement, but our understanding is that for investments over £500, relief would be at 30 per cent of the cost of the shares, to be set against the individual’s Income Tax liability for the tax year in which the investment was made. More details are available from the Inland Revenue.

Does the Community Share Initiative replace the current Cooperative membership?

Membership and shareholding will be synonymous. All membership fees currently held by the shop will be converted to shareholdings at £10 per share. Any new investors will automatically become members.

 

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