Money invested is at risk and is not guaranteed like money in a UK bank account. Community shares are a long term investment. We aim to buy back shares in a phased way or (where possible) on demand. Subject to cash-flow we will probably buy back about 5% per year for 20 years so you should see this as a 20 year investment. Community shares can be inherited. Community shares will not rise in value and cannot be sold – other than back to the issuer.
We hope to be able to pay about 4-5% interest each year on community shares. Interest will be tax free for almost all investors. (see below for details)
Changes to tax on interest from 6th April 2016
- Basic rate income tax payers (20%) will be allowed an annual income of £1,000 in interest before they pay any tax.
- Those on the higher rate (40%) will have an allowance of £500 in interest.
- Those on the top rate (45%) will have no allowance at all.