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ART Business Loans

ART - 2020 CITR Withdrawable Shares

£500 minimum

ART Business Loans is an accredited Community Development Finance Institution (CDFI). As a result, investments in ART are eligible for Community Investment Tax Relief (CITR).

 


Minimum raise for offer to proceed

No minimum


Financial return

Shares are offering Community Investment Tax Relief (CITR) - this gives a deduction of 5% of the amount invested from an investor’s Income Tax bill or Corporation Tax bill each year for five 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

ART Business Loans focuses its lending to create and preserve jobs, in particular to those who have been traditionally deprived of opportunities, for example, enterprises geographically located in areas of disadvantage or led by Black, Asian and Minority Ethnic (BAME) people, women or disabled individuals. At least 75% of the businesses that ART Business Loans lends to fall into these categories.


Minimum investment amount

£500

You must order a minimum of 500 shares.


Maximum investment amount

£100,000

The maximum shareholding any individual or institution can hold in ART cannot exceed £100,000.

There is no upper limit/maximum investment (and total shareholding in ART Business Loans) for other Co-operative Societies and Community Benefit Societies.


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 ART Business Loans. ART Business Loans will write to all investors towards the end of the five year period and it is ART Business Loans intention to invite investors either to withdraw their shares at that point or to reinvest them in ART Business Loans through a fresh issue of shares.


Claiming CITR

ART Business Loans will issue a tax certificate to investors, which will include their name, address and size of their shareholding in ART Businesss Loans.

Whilst an investor does not have to submit the tax certificate to HMRC, they will have to claim the relief – ART Business Loans 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 relief is due. If you do not normally complete a tax return, you will need to request one from HMRC.

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


Interest accrual

ART Business Loans is inviting people to become members and investors throughout the year.  Monies will be held in escrow by Ethex until ART Business Loans draw down those monies - draw down will trigger a short process where your subscription will soon after become an investment, and interest will start accuring.  ART Business Loans has set three indicative draw down dates for money invested:

  • 30th September 2019
  • 30th December 2019
  • 30th March 2020

These dates are subject to change.


Keeping track of your investment

The details of your investment are recorded on your share certificate and by ART Business Loans.

Share certificates are issued by the ART Businses Loans or its registrar.


Membership

Investors in ART Business Loans automatically become members. Investors can be individuals or corporates. ART Business Loans currently has more than 300 investor members, who have invested a total of over £1,000,000 over the years.

All members, in line with the rules of ART Business Loans, 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).

£1,0000%
Applied for to date, of
£500,000 target

Need help?

The Ethex team are here to help from 9am to 5pm

https://www.ethex.org.uk/savings--investments_16.html

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