IMPORTANT: This site is still evolving. A few links don't yet work.

Siop Gymunedol / HAVARDS / Community Shop

MORE INFORMATION

This page contains more information about the project and about the investments you can make to assist.

The details are still being worked out, and the information here will be extended and improved, when finalised. Watch this space!

Investments

Your investment will help us purchase the shop which is already viable and unlock grant funding to retain and improve it to its full potential and ensure the business is a success. We aim to maintain and improve it as a successful trading post serving both the local community and visitors to the area. With your help we can raise the funding and prepare SIOP Havards for a new beginning. Why not sign up to volunteer, be part of this exciting venture?

Your return

Havards is already a profitable business. In return for your financial support, you will receive interest on your investment, when profits allow. More than that though, we are confident that when you visit you will be rewarded by an open, friendly, warm and welcoming shop that lies at the heart of its community and reflects all those who live in Tydrath and the surrounding area.

Internal View of Havards

Inside Havards - an Aladdin's Cave!

Buy a share, become a member, have a say on how the shop is run. We will soon get the application form to apply to buy a share up on this website.

If you would like to become a shareholder but would prefer to pay monthly then get in touch, we can arrange a Standing Order Mandate.

It should be possible to offer tax relief of 30% under the Social Investment Tax Relief (SITR) system. (i.e. if someone invests £1,000 they will get tax relief on £300 – as long as they are a UK tax payer) as well as an annual dividend subject to the annual trading figures. Investments must be for at least three years to qualify for SITR.

You may purchase more than one share but voting rights will be on a one person one vote basis (not one vote per share).

If insufficient funds are raised to go ahead, investments will be returned with no loss to potential members and the purchase will not take place.

What is a Community Benefit Society?

References: Cooperatives UK and this blog.

A Community Benefit Society (CBS):

When and how can I withdraw my loan / sell shares?

Shares: Shares must be sold back to the CBS at the issue price. Shareas must remain invested for a minimum of 3 years in order to get tax relief. We plan to offer to buy back shares once the Community Benefit Society (CBS) is operating profitably, subject to FCA rules.

Loans:
- Loans must remain invested for at least 3 years after the investment, in order to qualify for tax relief.
- Providing the company is trading profitably, after the three year period we will aim to pay back loans subject to a period of notice. (details to follow.)

How will I get tax relief?

- Once we have traded from Havards Community Shop for a period of four months we will apply to HMRC for Social Investment Tax Relief (SITR).
- We are taking steps and professional advice to ensure that we are eligible.
- Once successful, then we will be sent compliance certificates (form SITR3) and a unique investment reference number to give to investors. Investors will be able to use these to apply for tax relief.
- Investors are able to claim the relief up to 5 years after the 31 January following the tax year in which the investment was made.
- There is a limit on the time available to apply for the tax relief which will be around 4 years (depending on how long it takes to get the compliance agreement.)
- You can claim tax relief on your loan and also on the purchase of shares.
- Example: If an investor lends £10,000 then they would receive tax relief at 30% which is £3000. This will reduce their taxable income by this amount. For a 20% tax payer, this would result in a reduction of tax payable of £600.

What is the risk?

Please note that Community shares and loans are at risk and you could lose some or all of the money you invest. You have no right to compensation from the Financial Services Compensation Scheme, nor any right of complaint to the Financial Ombudsman Service.