What are the conditions for the tax shelter?
The startup tax shelter programme has a number of conditions to comply with to ensure your tax reduction, including:
- Time: you must keep your Notes for at least four years. Similarly, Spreds Finance cannot sell the shares of the company during the 4 year period.
- Activity: the company you invested in cannot change their business to become an investment firm, financing enterprise or treasury company; or a management company or a real estate company.
- Use of funds: the company cannot use the funds raised to distribute dividends, to acquire shares or to issue loans.
If these conditions are not met, the investor will be obliged to refund a portion of their tax reduction received, pro-rata the remaining time of the 4 year period.
If you are in any doubt about the availability of any tax relief, or the tax treatment of your investment, you should obtain independent tax advice before proceeding with your investment.