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Over £130,000 by community looking to purchase historic shop

A COMMUNITY looking to purchase the historic ironmongers shop, Havards, in Newport, has already raised £132,000.

The committee members of the new Siop Havards Project in Newport, only launched the project six weeks ago but it is now up to 40% of the target minimum of £330,000 to buy the historic shop.

This week the committee is also celebrating clinching HMRC Social Investment Tax Relief (SITR) ‘advance approval’. This means that investors buying shares in the Havards Community Shop will be able to claim 30% of their investment against tax through their tax return for that year or through their payroll.

This means that 30% of the investment can be claimed in the first year once the shop starts trading as the community shop. Also HMRC confirms deferral of a Capital Gains Tax charge if you reinvest the profits into a social enterprise and then after at least 3 years, you can sell or give away SITR-qualifying investments that have gained in value without paying capital gains tax.

The secretary of the community shop project, Chris Morgan noted: “It is great that HMRC have given us this advances assurance that we will be eligible to offer the 30% tax relief to our investors, but we have only been given SITR for the first £300K invested so please don’t delay if you would like to support the project and receive the tax relief.”

Chris added “If the purchase of Havards is successful, investors could potentially earn interest up to 4% of their share value per annum, plus 30% tax relief on any sum invested.

“Siop Havards is a profitable business and we’re planning for growth: our business plan for the future, community owned Havards, forecasts increased profitability through extending the trading space and product ranges and innovative marketing.”

During the past 6 weeks the project has had national press and TV coverage and support from celebrities such as Cerys Matthews. The majority of people in the town of Newport and visitors agree that a shop such as Havards Ironmongers is an important commercial asset for the area.

The committee of the project are now asking people to support in reaching the target to raise the £330,000 by the beginning of August. Shares are £1 each with a minimum of £200 that can be paid through installments. Discussions with the community shares unit in Cwpmas (Wales Cooperative Centre) shows that the vast majority of investments is received during the final few weeks of a share offer. Anyone interested in knowing more can view the full details on the website www.siophavards.cymru or email [email protected]