Because B4RN is non-profit we aren’t interested in commercial speculation, so we only extend our network into communities where we’re wanted. Each new area that invites B4RN in needs to raise the investment to cover the work and materials required for their area’s installation.
Enterprise Investment Scheme
Broadband for the Rural North Ltd was authorised by HMRC to issue Enterprise Investment Scheme (EIS) compliance certificates on the 2nd December 2011 making investment in B4RN withdrawable shares eligible for tax relief under the Enterprise Investment Scheme.
On the 14th October 2018 HMRC announced they would be testing our compliance with a new ‘risk to capital’ rule brought in as part of the Finance Act 2018. This rule came in to force on the 15th March 2018.
The rule states that for investors there must be a significant risk to capital greater than the net investment return. This test was introduced to avoid abuse of EIS by schemes that were structured to obtain tax relief but pose no real risk to investors.
B4RN have made a prompt and detailed response to HMRC’s enquiries and expect to receive a formal decision in early December 2018.
Whilst B4RN’s directors are confident that B4RN continues to remain eligible for EIS, HMRC have decided in the interim not to process EIS1 forms for investments made in B4RN after the 15th March 2018 until they have made their determination.
In the interests of openness and transparency, B4RN’s directors have decided today to place this information in the public domain so that investors are fully aware of this situation. We will also be contacting investors who have invested in B4RN shares since the 15th March 2018 and who are waiting for EIS3 forms.
Barry Forde, MBE
Chief Executive Officer
Broadband for the Rural North Ltd
13th November 2018
Every community’s core investment is made up of shares, the value of which can be ring-fenced for supporting the build-out in their area. For full details please see the shareholder prospectus on the Resources page.
- Minimum shareholding £100 / maximum £100,000.
- All shareholders are members of B4RN. One member one vote.
- Shares must be held for a minimum of 3 years.
- After year 3, interest of 5% can be paid out or reinvested.
- Some shareholders choose to invest £1,500 and claim free connection worth £150.
- Shares can only ever be sold back to B4RN at £1 each.
B4RN also currently accept a limited number of 5 year loans from the community, paying 4% interest. For full details please see B4RN’s loan prospectus on the Resources page.