B4RN has updated its investment information following the government ruling that B4RN investment is no longer eligable for EIS Tax relief. According to a statement from B4RN CEO Barry Forde:
HMRC have, finally, come to a decision on our EIS eligibility. Regrettably, they have decided that EIS no longer applies to Community Benefit Societies like B4RN and therefore are withdrawing our eligibility for that tax relief. That means that all shares that have been waiting on EIS certificates will not receive them and the 30% EIS tax relief will not apply. But investors will now receive interest from day 1 backdated to when the investment was received. The current interest rate is 5%, but this may change from year to year depending on how well B4RN is doing, which is the same as for all our shares. We hope that the community will continue to support us and buy shares in B4RN so as to allow us to build out to more areas and connect more rural properties desperately in need of high-quality broadband. Whilst it’s a disappointment that the 30% tax relief no longer applies, the current 5% per annum interest paid on our shares is still an attractive return given current interest rates.
Barry Forde – CEO