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Tamar Energy Community

Tamar Energy Community 2020 Share Offer - OFFER PAUSED

£250 minimum

Members subscribing for shares under this offer should receive a return on their investment targeted at an annual rate of 5%. Interest will accrue from when the shares are allocated.


Minimum raise for offer to proceed

£160,000


Financial return

The target return for the shares issued by Tamar Energy Community is 5% per annum. Interest wil accrue from when shares are allocated and will be paid in September each year for the previous financial year (April to March). The first interest payment will be made in September 2021 for the period to end March 2021, subject to available funds.


Social return

TEC provides support and services in four main areas: energy advice, local energy innovation, sharing knowledge, and community-owned renewables.


Minimum investment amount

The price of each share is £1. The minimum number of shares you can buy is 250.


Maximum investment amount

The price of each share is £1. The maximum you can buy is 100,000 (except for investment by other societies). The maximum holding is inclusive of any shares you already hold in the Co-op.


Getting invested money back

Shares under this Share Offer are classed as ‘withdrawable and non-transferable’, which means that Members can request to withdraw their Shares from TEC but they cannot be sold or transferred directly to other people. The return of Members’ capital can be achieved by TEC purchasing the Shares back from the Members, which it intends to do over 16 years. TEC’s ability to repay members is dependent on building up a capital repayment fund out of revenues and TEC will only be able to repay a small amount of capital each year.

Members will have the opportunity to apply to have some, or all, of their Shares bought back from 2025 onwards. If requests for Shares to be bought back are oversubscribed (i.e. greater than the amount the Directors in their absolute discretion deem appropriate to acquire), the amount of capital repaid per Member will be pro-rated according to their proportional holdings. Repayments to members facing exceptional circumstances may also be prioritised at the discretion of the Directors.

If requests for Shares to be bought back are less than the Directors deem appropriate to acquire, then the Directors may at their discretion decide to repay Member capital early. In this case all Members would be repaid an equal percentage of their capital.

Payment of Members’ interest and repayment of capital is not guaranteed and will be subject to TEC earning sufficient operating surplus and having sufficient cash reserves. 


How secure is invested money?

All investment and commercial activities carry risk. Anyone buying shares in Tamar Energy Community is at risk of losing some or all of the money invested and there is no guarantee that you will receive any return on your investment. The shares are not covered by the Financial Services Compensation Scheme or the Financial Ombudsman Service. Accordingly, the money you pay for shares is not safeguarded by any deposit protection scheme or dispute resolution scheme. Members should take appropriate advice and make their own risk assessment whilst also bearing in mind the social, educational and environmental benefits of investing in TEC.


Keeping track of your investment

Ethex will manage the investor register for Tamar Energy Community. You will be able to login into the registry system, view your holdings and download a copy of the share certificate.

Annual accounts will be prepared by TEC’s accountants, presented to the membership at each AGM and published on TEC’s website.


Income tax treatment of Share Interest received by Members

As TEC is registered as a Community Benefit Society, payment of Share Interest to a Member which is not a capital repayment is not treated as a profit distribution for tax purposes, i.e. it is not taxed as a dividend. Payments of this kind are treated as interest received by the Member and therefore subject to income tax.

TEC will not deduct income tax from Member payments. Members must include the payment received on their personal income tax return for the tax year in which the payment is received and may be required to pay tax at their prevailing marginal rate of income tax, which will depend on their other income in the year. Applicants should consider obtaining professional tax advice if they are unsure of their position.

TEC is required to make a return to HM Revenue & Customs shortly after its year end, providing details of the name and place of residence of each person to whom it has paid more than £15 in that period without the deduction of tax and the amount paid to each person in that period.


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.

Withdrawable shares in Community Benefit Societies currently qualify for 100% business relief from inheritance tax, where these shares have been passed on as part of a Member’s will. This is as long as TEC is engaged in a trade which is it is carrying on for the purposes of making a profit. This is the intention with TEC and assuming this remains the case in practice (and the law does not change) this relief should be available to Members.


Who can invest

This share offer is open to individuals over 16 years of age and to organisations which support the objects of the Society.

Buy shares

OFFER PAUSED
  • Approved by to offer shares
  • Registered with HMRC
  • Experienced board of directors

Why use Ethex?

  • Easy to understand, compare and choose products
  • Extensive expertise in social investment
  • First ever not-for-profit investment broker
  • Easy - we do everything for you
  • Make multiple investments much more easily
  • Income from brokerage supports Ethex

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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