Investors wishing to buy shares in Tribe Festivals Ltd will also be able to reap a host of other benefits as an investor in the company including discounted tickets to other Tribe-owned or run projects. There will also be a host of benefits available to investors onsite at Wychwood Festival each year.
New investors will be able to take advantage of EIS relief and will be entitled to a share of profits from the business going forward. A potential investment of £1000 will buy 10 shares in Tribe Festivals Limited, out of an available 200,000 shares in the company. This will give a small return by dividend when the company starts reporting a profit. However the main financial benefit comes with the free ticket opportunity that comes with the shareholding:
£240 of free tickets (at 2013 prices- ticket prices generally increase slightly each year)
£840 of savings in tickets for friends and family
£50 of bar credit
£50 of merchandise
Total value £1100
- 30% Income Tax Relief for investments up to £1 million p.a., reducing net cost to investors to 70p per £1 invested.
- Tax Free Growth – no capital gains tax payable on gains realised on investment.
- Loss Relief – losses to net cost (i.e. below 70p per £1 invested) can be off set against income in year of disposal or previous year, reducing capital at risk to 35p per £1 invested.
- Capital Gains Tax Deferral – capital gains deferred up to amount subscribed for shares. •Applies to gains arising three years prior to, and one year after, issue of qualifying shares.
- 100% relief from inheritance tax for EIS qualifying investments held for more than two years.