Frequently Asked Questions
If your question is not answered here please contact us.
If we don’t achieve our minimum or optimum targets by the closing date the Directors may decide to extend the deadline for a further two months.
If we still do not meet the minimum target of £40,000 of local investment by that point, we will not accept any applications for community shares and all money will be returned to applicants.
If we do not achieve our optimum target by the close of the share offer will seek additional support from grant funding and adapt the project plan to enable the project to proceed.
The Community Shares Standard Mark is awarded by the Community Shares Unit in recognition that a share offer meets national standards of good practice. It ensures that the offer document and application form are easy to understand and that you are provided with all the facts you need to make an informed decision. It also ensures that the offer is supported by the annual accounts and/or Business Plan for the Society and that nothing in the documents is purposefully incorrect, confusing, or misleading.
Societies are asked to sign a Code of Practice requiring them, among other things, to give the public a right of complaint to the Community Shares Unit. For more information about community shares, the Community Shares Standard Mark and the Community Shares Unit go to: www.communityshares.org.uk.
The Trust has a statutory asset lock. This restricts the ability of the organisation to use or deal with its assets other than for the benefit of the community. The only payments that can be made to our Members are to the value of withdrawable share capital held or any interest on withdrawable share capital.
The asset lock ensures that assets of the organisation cannot be transferred except to another organisation whose assets are similarly protected. This protects assets from being cashed in or the organisation being demutualised.
Investment in the project should be seen as a medium to long term investment. The business will take some time to build reserves and so requests for withdrawal will not be considered for the first four years from the date of investment. After year four of operations, performance of the business will be reviewed and our aim is to be able to approve shareholding withdrawals of up to £4,800 per year.
Our aim is to complete the building works and open by end of February 2021.
The main reason why people buy community shares is to support a community purpose, not to make a financial gain. Although you may receive interest on your shares in future years your primary return is the benefit that the social enterprise delivers to your community. The Business Plan sets out the financial projections that includes a payment of interest on shareholdings from the fourth year of operation (financial year 2023/24) at a rate of 2% interest on shares invested in the Society under this share offer. Payment of interest on shares will depend on the performance of the business and will be determined by the board at the time.
The minimum share investment is £25 with a maximum of £14,470.
The funds raised will be spend on capital building works, fixtures, fittings, initial stock with some reserves for working capital. Full details of our spending projections are in the business plan.
No. An individual’s investment is only made available to the board of the Trust and the membership secretary.
No, community shares cannot be sold. You may however request to withdraw some or all of your share capital. Note that limited withdrawals will, at the discretion of the board, be permitted, after the first four years of trading and subject to the business accruing sufficient reserves.
We have received Advanced Assurance from HRMC that investment in Parracombe Stores is eligible for Social Investment Tax Relief (SITR). We would urge you to seek independent advice as each individuals tax position is different. You can find out more at https://getsitr.org.uk/investors
For investors to claim SITR there are processes for both the social enterprise and the investor to follow.
Parracombe Community Trust, will complete the required HMRC compliance statement so that compliance certificates can be issued to those investors seeking relief. The earliest that this can be done is 4 months after trading has commenced and latest 2 years and 4 months after trading commences. More detail on the process for social enterprises can be found here.
An investor seeking relief will require a compliance certificate, this is issued by the social enterprise once they have completed a the HMRC compliance statement. The earliest this can be issued is 4 months after trading has commenced. You can find more details here for investors.