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Equal Care Co-op - OFFER CLOSED

Equal Care Co-op Withdrawable shares

£100 minimum

Equal Care Co-op are undertaking a share issue to raise capital to develop the UK’s first platform co-operative for social care. The board of the society may choose to extend the period of the share offer by up to four weeks if they believe that by doing so they increase the chances of reaching the maximum target.

Minimum raise for offer to proceed


Maximum Target


Financial return

Interest of 3% paid annually from: July/August 2022

Shares cannot rise in value, so there will never be a capital gain. They may be reduced in value if auditors instruct Equal Care Co-op to do so if they believe that the value of their assets has fallen.

Social return

Equal Care Co-op brings benefits to everyone involved in the relationship between givers and receivers of support. People on both sides of the care and support relationship are connected and empowered to be self-managing and an abundance of local care and support is created.

Tax Relief

This share offer has Advance Assurance from HMRC that it qualifies for Seed Enterprise Investment Scheme Tax Relief. That means investors will be able to claim tax reliefs on the value of their investment:

  • 50% of their income tax liability for the current or previous tax year (you choose which one to claim it against)
  • 50% relief of Capital Gains Tax on any capital gains used to invest into the share issue

So, if you invested £500, you would be eligible to reduce your tax bill by £250. If you used a capital gain to make the investment, you’d also reduce your capital gain tax liability on it from £140 to £70, giving a combined tax benefit of £320 In order to benefit from the tax relief, you must be a UK income and/or capital gains tax payer with tax due to pay equal or greater than the amount of relief you’re seeking.

Equal Care Co-op would be likely to apply for the tax relief certificates in summer 2019, and send them to investors shortly after that. The tax relief can be applied to the year you choose – either the year the investment was made, or the previous tax year.

If you pay tax via PAYE, you send the certificate to the tax office that processes your employer’s payroll tax collection, and if you do self assessment, you claim the relief when completing your tax return (unless you want to backdate it for a tax year you’ve already filed a return for, in which case you have to contact HMRC directly). 

SEIS investment is only available on the first £150,000 of investment from individuals (i.e. excluding organisational investment). Individual investments after the first £150,000 will be eligible for Enterprise Investment Scheme relief at 30% of the total invested, but note that there is no capital gains tax relief with EIS.

As a condition of being able to offer the relief, no investment can be withdrawn for at least three years after the date of the investment, and Equal Care will therefore not be in a position to consider withdrawal requests until 2022 at the earliest, and their financial projections are built around this withdrawal starting the following year, in 2023.

Tax advice cannot be given, and the Society can only vouch that the investment is a valid investment for tax relief. Anyone considering investing with tax relief in mind should contact a financial advisor to establish whether they themselves would be eligible.

Minimum investment amount


Maximum investment amount

Maximum share subscription per person: £30,000

Maximum share subscription per organisation: £100,000 (restriction not applied to Co-operative or Community Benefit Societies)

Getting your money back

Equal Care Co-op is registered as a society with The Financial Conduct Authority (FCA), but the sale of withdrawable shares in the society is not regulated by the FCA. Like many investments, these community shares are at risk and you could lose some or all of the money you invest.

Unlike deposits with high street banks, community shares are not covered by the Financial Services Compensation Scheme, nor is there any right of complaint to the Financial Ombudsman Service.

If you are considering investing a significant amount then you may wish to seek independent financial advice before doing so.

Investors who have claimed tax relief would also be eligible to claim loss relief against their tax liability for the difference between what they invested less any tax relief already claimed and what was returned to them.

So, let’s say someone has invested £1,000, as a Seed Enterprise Investment Scheme investor, using the cash made from selling an asset that’s deemed a capital gain. They can claim 50% of it against their income tax, and also reduce the Capital Gains Tax bill by half. All told they reduce their tax bill by £640, meaning they have invested £1000 at a cost to them ultimately of just £360.

Let’s say Equal Care then goes bust, and no one gets their money back. As far as HMRC are concerned, that means the investor has lost the value of their investment less their 50% income tax relief, so they’ll be able to declare that £500 loss against their tax liability. If they pay 40% tax, that’s another £200 saved of the investment, reducing the total loss again to just £160.

As a condition of being able to offer the relief, no investment can be withdrawn for at least three years after the date of the investment, and Equal Care will therefore not be in a position to consider withdrawal requests until 2022 at the earliest, and their financial projections are built around this withdrawal starting the following year, in 2023.

How secure is your money?

Payment of interest and capital is not guaranteed and is dependent on the continued success of Equal Care Co-op's business model. This investment is not covered by the financial ombudsman and there is no deposit guarantee scheme for this product.

If Equal Care Co-op did become insolvent, the ability of investors to recoup the funds they have invested would depend on firstly the value Equal Care Co-op (or the appointed insolvency practitioners) could get for the assets of the society and secondly, the value of their debts at that point.

In the event of insolvency or orderly winding-up, the proceeds from the sale of those assets and their cash would firstly pay off all Equal Care Co-op's creditors, and if there were any funds left at that point, would be used to pay back shareholders as much of their investment as they have outstanding as possible, on a pro-rata basis.

As a ‘common ownership’ society, the Society's Rules state that should there be any surplus after returning funds to investors this would have to be given to another organisation supporting the co-operative movement and which has a similar common-ownership clause.


Voting rights are held solely by members. Any investor, no matter what size their investment is, will become a member of Equal Care Co-op with one vote.

Nomination and Inheritance Tax

You cannot pass on your shares while you are alive. They are yours only. This investment is in withdrawable share capital which cannot be transferred, sold or given to anyone else. However, if you die they can be passed on to someone you have nominated and informed the Society of this nomination up to the level of £5,000 of investment. Any investment above £5,000 requires your beneficiary to be explicitly named in your will.

Offer Closed

 As of 14th August 2019 this offer is closed

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