The Hive is offering shares to help them fund the development of a community cultural venue for Winsford and The Weaver Valley. The venue will house facilities including a coffee bar, and a street food shack, professional stages, recording and rehearsing rooms, a project office and meeting spaces for student work experience as well as a courtyard with outdoor bar.
Minimum raise for offer to proceed
This community share offer needs to reach the minimum target of £60K by 30th August 2019. However, if the target sum has not been received by that date, but they are very close, the Committee reserves the right to extend the deadline – rather than lose The Hive.
The £60k draw down is subject to The Hive receiving funds from the More Than a Pub Programme.
Financial return
This offer has a target interest rate of 3% per annum, accruing from April 2020 with first interest payment in April 2021
Social return
The Hive will make de bees a cultural focal point for Winsford which will act as a catalyst to re-ignite the economy and sense of community. They will host cultural events daily, from gigs and concerts to cinema, theatre, poetry, dance and exhibitions.
Minimum investment amount
£200
£20 for people living in the CW7, CW8, CW9 and CW10 post code areas
Maximum investment amount
£100,000
Getting your money back
After the minimum three years, you may withdraw your share capital from the Society provided notice of three months is given in writing and the Committee do not block the request for any reason, as they are entitled, legally, to do. (This would be the case, for example, if there was a sudden rush of people wanting to withdraw share capital). The Committee does not expect to use this power as evidence from elsewhere is that new members come forward to replace departing members, keeping the level of shares roughly constant.
The Society has a charitable asset lock designed to safeguard The Hive for the future meaning that if the Society is dissolved, then once shares and other liabilities are paid, residual assets cannot be distributed amongst the shareholder members but must be used for charitable purposes for the community of Winsford.
Shares are non-transferable. Shares may be withdrawn from the Society after a minimum of three years, subject to the terms outline in the Share Offer Document.
This investment is not covered by any government compensation scheme.
How secure is your money?
Payment of interest and capital is not guaranteed and is dependent on the continued success of The Hive's business model. This investment is not covered by the financial ombudsman and there is no deposit guarantee scheme for this product.
Nominal share value cannot increase. However the value may fall if liabilities exceed assets e.g. if the business fails.
Your investment is fully at risk, before investing you should read the risk factors in the Share offer Document.
Keeping track of your investment
The Society will issue you with a share certificate for your investment after completion of the raise.
Each year The Hive Live will publish a set of accounts.
The Hive won't just communicate with investors once a year at an AGM - there will be regular newsletters, quarterly members meetings, a Facebook page and website. They want to know what you think about your pub.
Membership
Once you are issued with your shares you will become a shareholder member of the Society and will be entitled to full voting rights at general meetings and to stand as a director of the society. If your shareholding drops below the minimum amount, you will lose this right. All shareholder members have one vote irrespective of shareholding.
Nomination and Inheritance Tax
In the event of the death of a member, the repaid value of the shares will normally be added to the estate for probate purposes. You may elect to nominate a recipient for the value of the shares (but only up to the amount set out in law) and thus (under current legislation) remove the value of the shares (up to the amount set out in law) from your estate for probate purposes i.e. the shares may pass to the nominee outside the Will of the deceased. The nominated property will nevertheless form part of the deceased’s estate for Inheritance Tax Purposes, unless the estate is an excepted estate.
The Hive Live will collect details of Nominees, once share raises have completed - new investors will be contacted with forms to complete.
Investing for children
The Hive will collect details of investments made on behalf of children, once the share raise has completed - new investors will be contacted with forms to complete.
Tax Relief
The Hive Live have applied for Advance Assurance from HM Revenue and Customs (HMRC) that the shares in The Hive are eligible for tax relief under SITR.
HMRC is expected to share the outcome of their decision toward the end of June. Subscribers to the share issue will be informed about the outcome of this decision, when The Hive has this information.
As long as you are a UK taxpayer, you are eligible for tax relief on your investment subject to HMRC rules on eligibility, as long as you leave your shares in the Society for at least three years.
Individuals making an eligible investment can deduct 30% of the cost of their investment from their income tax liability, either for the tax year in which the investment is made or the previous tax year (if 2014/15 or later). The investment must be held for a minimum period of 3 years for the relief to be retained.
If individuals have chargeable gains in that tax year, they can also defer their capital gains tax (CGT) liability if they invest their gain in a qualifying social investment. Tax will instead be payable when the social investment is sold or redeemed. They also pay no CGT on any gain on the investment itself, but they must pay income tax in the normal way on any dividends or interest on the investment .
The actual amount of tax relief you can claim will depend on your personal tax circumstances .
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