Investments in our community shares qualify for 30% to 50% tax relief!

We’ve received Advance Assurance from HMRC relating to the issuance of £650,000 of Ordinary Shares in Kings Head Community Benefit Society Ltd, qualifying under the Seed Enterprise Investment Scheme (SEIS) and Enterprise Investment Scheme (EIS). This is fantastic news for everyone who has invested in our community shares and is a UK taxpayer, because the UK government will give you back at least 30% of the tax you have paid on the amount you have invested. See below for info.

READ HMRC'S ADVANCE ASSURANCE NOTICE

Enterprise Investment Scheme (EIS)

EIS tax relief of 30% is available against your tax liability for up to £400,000 of all community shares investments made. So for example, if you invest £500, you’ll get income tax back of £150 (i.e. 30%), meaning the net cost to you will be £350. If you use the proceeds from a capital gain to make the investment, you won't get a reduction in CGT, but you will be able to defer the CGT that’s due until such time as the investment you make is returned to you.

Seed Enterprise Investment Scheme (SEIS)

SEIS tax relief of 50% will be available on a first-come-first served basis to those who have invested £10,000 or more in shares, up to a cumulative total across all investors of £250,000. SEIS investors will be able to claim income tax relief on 50% of their investment. So for example, if you invested £10,000 in shares within the first £250K of investment received by KHCBS, you can reduce your UK income tax by £5,000 (provided you have that amount of tax to pay, equivalent to or greater than whatever your relief would be). And, if you use the proceeds of a capital gain for the investment, you can also reduce your Capital Gains Tax by half to just 14%. The great news is that even if you were not one of those to invest £10k or more within the first £250k received by KHCBS, you will still qualify for EIS tax relief of 30%, regardless of the amount you invested.

Your investment will be made in the current tax year ending on 5th April 2026, so the relief will be claimable on tax due for this tax year (or you can backdate it to the previous tax year 2024-25).

Claiming back tax relief

After the pub has been trading for 4 months, KHCBS will send an investor list and SEIS / EIS compliance form to HMRC. Upon their approval, EIS3 / EIS5 certificates will be issued by KHCBS to all investors, who can claim tax relief as follows:

  • The most common way to claim tax relief is through your tax return:

    • ONLINE RETURN  In the 'Tailor your return' section, answer 'Yes' to the question on 'Other tax reliefs'. Then enter the total amount of your EIS subscriptions in the relevant section under 'Other tax relief and deductions'.

    • PAPER RETURN‍ ‍Complete the 'Additional information' sheet (form SA101) and include it with your main return (form SA100). Enter the total amount in the 'Subscriptions for shares under the Enterprise Investment Scheme' box.

    • DETAILS REQUIRED  For both methods, provide details of each investment, including the company name, the amount on which you are claiming relief, the date of share issue, and the Unique Investment Reference (UIR) from your EIS3 or EIS5 certificate. Enter this information in the 'Any other information' box on the main tax return.

  • If you are not registered for Self Assessment and your tax is paid via PAYE, you can still claim the relief as follows:

    • Wait until you receive your EIS3 or EIS5 certificate from Kings Head Community Benefit Society.

    • Complete the claim form included within the certificate and send it to your tax office.

    • HMRC can then adjust your tax code to give you the relief, or send you a tax refund if you've already paid too much tax.

    • You cannot claim the relief until you have received the official EIS3 or EIS5 certificate from Kings Head Community Benefit Society.

    • HMRC does not typically require you to submit the physical certificate with your return, but you must keep it safe as they may ask to see it later.

    • You can 'carry back' some or all of the relief to the previous tax year, which can also be done on your current year's tax return or by sending the EIS3 / EIS5 form directly to HMRC.

    • For detailed guidance, you can refer to the official HMRC Enterprise Investment Scheme help sheets, available here.

Need more information?

You can find more information on the tax relief available via the UK government website, or feel free to contact us.