investing

The ICC share offer is about more than 3% return

by Ethex 26 February 2026

The community share offer from ICOF Community Capital offers an attractive tax incentive as well as impact

For impact-focused investors, the ICOF Community Capital (ICC) Share offer presents a compelling opportunity to invest in an established organisation at the heart of the UK’s cooperative movement. Perhaps they may pause at the targeted return rate of 3%, thinking it is a little on the low side, but they wouldn’t be seeing the full picture.

Because what makes this offer genuinely stand out isn’t just the interest rate, it’s the fact that it qualifies for Community Investment Tax Relief (CITR). And that changes the picture significantly for many investors.

What does CITR offer?

Community Investment Tax Relief is a UK Government incentive designed to encourage investment into community finance organisations that support co-operatives and community businesses that are often overlooked by mainstream lenders.

If you’re eligible, CITR allows you to claim back 25% of the amount you invest as income tax relief, spread evenly over five years.

So, if you invested £10,000, you could receive £500 per year in income tax relief, a total of £2,500 over five years.

That relief is separate from the 3% interest paid in shares. It’s not interest in the traditional sense, but it is real value back in your pocket, and it meaningfully strengthens the overall return profile for UK income taxpayers.

In recent years, we’ve seen very few community share offers offering CITR, making this opportunity relatively rare.

Looking beyond the headline rate

Stepping back and looking at the full picture, we think this share offer will be very attractive to many impact investors.

It offers a 3% interest rate, aligned with long-term sustainability and paid in shares. Then you have 25% income tax relief spread over five years. ICC has confirmed that an investment in this share offer will also enjoy relief from Inheritance Tax. (Please note that Inheritance Tax limits are to be revised from April 2026. We recommend that investors seek independent financial advice from a tax expert.)

All of this considered, this looks to be one of the most tax-efficient community investment opportunities currently available in the UK.

For investors who pay income tax and care about what their money is used for, that combination is powerful.

Finance with a co-operative heartbeat

ICC sits at the heart of the cooperative movement. Its purpose is simple and clear: to provide responsible, sustainable finance exclusively to co-operatives and community businesses, which are often underserved and overlooked.

That means your investment could help a local pub or shop stay open, owned by the community that uses it, or help create a community-owned, permanently affordable housing solution to help families priced out of accommodation in their local area.

These are organisations that really are the beating heart of our communities; they strengthen local economies, build resilience and keep wealth circulating within communities.

And ICOF has a long track record of prudent lending. Even where individual loans have underperformed in the past, collateral has existed to support recoveries, demonstrating careful risk management over time.

A different kind of value

The ICOF share offer isn’t positioned as a high-growth opportunity. Instead, it offers something more considered: a blend of impact, target return and tax efficiency.

For many investors, the 25% CITR relief alone will significantly enhance the overall outcome. When combined with the 3% interest and the social impact investments will help to create, this becomes a compelling offering for people looking to balance financial planning with positive social change.

At Ethex, we believe investments should do more than simply generate returns. We support investments that strengthen communities, back ethical enterprises and help make access to capital fairer.

This offer brings all of that together in a way that is financially beneficial as well as socially meaningful.
View the ICC share offer here

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