What happens if my Notes are sold within the 4 years?
Being Tax Shelter eligible, a specific campaign has allowed you to benefit from a reduction on your investment. However, this full reduction is guaranteed only pro rata temporis for the time investors keep their shares (the maximum required amount being 4 years). In other words, if the investors from Spreds Finance accept to sell their shares, you will no longer be able to benefit from the Tax Shelter reduction from that point on.
Please note that you will have to specify in the following year's declaration under the code 1328 of Section X that you have sold your shares, for which Spreds will of course provide you with a Tax Shelter attestation of transfer of shares to complement your income taxes form.
Example: an investment of 1 Note of €100 with a notary closing in December 2019 and a buy back of shares in late June 2020.
If the company is Tax Shelter eligible, you will declare a 45% Tax Shelter reduction during your tax return in May 2020. However once the buy back takes place (in June 2020) your Tax Shelter will be corrected pro rata temporis (based on the time you've held onto the Note), since the Tax Shelter no longer applies if a share is sold.
During the tax return in May 2021, you will have to declare that you have sold your Note and you will have to reimburse the difference: 4 years (max Tax Shelter duration) – 7 months (period we hold on to the Note) = 41 months or approximately € 38.