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Foundation East

Foundation East - CITR Withdrawable Shares

£50 minimum

Foundation East is accredited by the Department for Business, Energy and Industrial Strategy (BEIS) to offer Community Investment Tax Relief (CITR) to investors wishing to buy its shares. The Tax Relief enables the investor to offset their tax bill by 5% of the value of their investment each year for 5 years. The share investment must remain with Foundation East for 5 years in order for it to remain eligible for CITR.


Minimum raise for offer to proceed

No minimum


Financial return

Shares are offering a tax relief of 5% per annum of the initial monies invested for 5 consecutive years.

This is a Tax Relief based offer.  So whilst 5% of the value of your investment can be claimed off your personal or corporation tax payments each year for 5 years, there is no interest paid.


Social return

The wellbeing and personal circumstances of Foundation East’s borrowers is improved through their ability to access affordable finance to grow and develop their businesses. The borrower’s ability to fulfil their ambitions of becoming entrepreneurs, through Foundation East’s belief in them, enables them to develop important qualities such as patience, persistence and perseverance.


Minimum investment amount

£50 for Individual Investors

£250 for Corporate Investors


Maximum investment amount

£100,000

The maximum shareholding any individual or institution can hold in Foundation East cannot exceed £100,000 unless the investor is a Community Benefit Society.


Getting your money back

A CITR eligible share investment must carry no right to be repaid for a period of five years from the date of the investment. Therefore shares raised through this offer are not redeemable at any stage during the first five years following the date of the investment.

At the end of that five year period shares purchased under the terms of this offer are withdrawable at the request of the investor, subject to the rules of Foundation East.


Claiming CITR

Foundation East will issue a tax certificate to investors, which will include their name or company name (if applicable), address and size of shareholding in Foundation East. Whilst an investor does not have to submit the tax certificate to HMRC, they will have to claim the tax relief themselves. Foundation East is not able to do this on their behalf.

Individual investors should claim relief on their Self Assessment tax return for each tax year for which the relief is due. If the investor does not normally complete a tax return, they will need to request one from HMRC. Tax relief should be claimed annually, at the end of the tax year to which the claim relates has ended, using the CITR tax certificate information.

A corporate investor should claim its CITR tax relief as part of its corporate tax return for each appropriate accounting period.

Further information on CITR and how it can be claimed by investors can be found on the government website


Keeping track of your investment

The details of your investment are recorded on your share certificate and by the Society.

Share Certificates and CITR Certificates are issued by the Society


Membership

Investors in Foundation East automatically become members. Investors can be individuals or corporates.

All members, in line with the rules of the Society, are entitled to vote at the Annual General Meeting or, if called, at Special General Meetings. Each member has one vote, irrespective of the size of their investment.


Tax Relief

Investors should be aware that the investment must be left in place for 5 years and the tax relief is limited to the amount of tax you pay. If the tax liability is less than the tax relief claimable, the investor can carry over the relief to the following year (but this is only possible within the tax years that relate to the five years of the investment). This means that if you think you may not be paying tax at some point over the next five years, this investment may not be appropriate for you. Investors should note that the relief is claimable in the tax year or the accounting period in which the investment is made (and the four subsequent tax years or accounting periods).

Go to site

To apply for shares, use the investment portal on Foundation East's website

Go to site

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