Assuming you're a tax payer and you intend to buy shares for our purchase of The Crown then you will be interested to know that you could pay less tax on your income as a result.
We have been given advance assurance from HMRC that investments (shares) could be eligible to fall into the Seed Enterprise Investment Scheme (SEIS) or receive Social Investment Tax Relief (SITR).
So for the first £150,000 raised by shares, tax relief of 50% could apply. A rate of 30% could apply to the remainder of the funds raised.
What Does This Mean For Me?
It means potentially, investing £1000 in shares for your community pub could therefore save you £500 off your tax bill. Essentially your £1000 purchase has only cost you £500! This is assuming you're a tax-payer and in the first £150,000 of shares purchased.
Should I Increase my Pledge?
That's entirely up to you, but this news does mean that you may be able to afford a larger share purchase than you originally thought simply due to the saving on your tax bill.
Currently we're a tad short of meeting the £150,000 limit anyway, so if everyone who pledged did finally buy shares they would all enjoy the 50% limit. Latecomers could still receive a 30% reduction which is still not to be sniffed at!
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