17 March 2018
In this newsletter there are details about the bond offer to raise finance for our new projects, advice on making tax returns, information about withdrawing shares, and news about the interest that some members waived following the interest payments last year.
New Bond offer live on 21 March
We have been working for more than a year to bring a number of new projects to fruition and at last we are able to tell you about them and to announce the bond offer that we will be launching next week to raise the necessary finance.
We are working with Mongoose Crowdto provide the platform for investing in these new projects and there is a link to the fundraising web page below.
We need to raise £447,000 to fund the installation of 540 solar panels on 4 roofs at Churchill Academy in North Somerset, and to purchase two 50kW ground mounted solar arrays at Brockley in North Somerset, as well as providing some additional finance to support share withdrawals.
The bond is being offered under the Innovative Finance ISA so people can invest up to £20,000 tax free each year. Our offer will run from 21 March 2018 until 30 April 2018 (or until we reach our target) so people will have the opportunity to invest in both the 2017/18 and 2018/19 tax years.
To make this investment you will need to create an account on Mongoose Crowd. Once you have done that you can log in to your personal account from where you can deposit and withdraw cash and transfer cash into the LCG bond.
You can deposit your investment into your personal account (called an E-Wallet) straightaway and then transfer the cash into the LCG bond on Wednesday when it becomes live.
Click HEREto go to the Low Carbon Gordano page on the Mongoose Crowd website
The stages in the process are as follows:
1. Click on the LCG page.
2. Select REGISTER and go through the registration process
3. LOGIN in to your account.
4. Select the MONEY tab at the top of the page.
5. Select ADD Money (You will also see a STATUS tab which asks you to upload identification such as a scanned copy of your passport if you haven’t already done so whilst registering).
When the bond offer becomes live you can then login to your account and, using the MONEY tab, transfer your investment to the LCG bond.
Please note that investing through Mongoose Crowd puts your capital at risk and investment returns are not guaranteed. Be sure to read the complete risk warning on https://www.mongoosecrowd.co.uk/risk before deciding to invest.
Making your tax returns
There have been changes to the way HMRC manage tax returns in relation to interest on investment. This may mean that you do not have to declare the interest on your LCG shares or make a tax return. To help members navigate the new procedures we have developed a guidance note which you can see HEREon our website. This is only guidance and members should always consult an Independent Financial Adviser if they have any concerns over their tax status.
Following the end of the EIS eligibility period, a number of members have withdrawn their shares from Low Carbon Gordano. In going through this process for the first time in 2017 we have now developed our policy for share withdrawals which you can find HEREon our website.
In essence we will allocate a certain amount of funds each year at the AGM to finance share withdrawals. Members will be able to request the withdrawal of shares within the amount of funds available. The policy is aimed at providing a regular stream of funds for share withdrawals while maintaining sufficient cash flow within LCG to finance the ongoing operation and provide annual contributions to the Community Benefit Fund. The long term intention is that all share capital will be repaid within the-25 year timeframe of our projects.
Members can request to withdraw their shares at any time but the next set of withdrawals will only be paid out in November 2018 following the AGM. In the case of hardship, exceptions will be made to this at the discretion of the board.
If you are considering withdrawing some or all of your shares then please read the share withdrawal policyfirst.
Waived interest donations
Some Members waived some or all of their interest payments last year and donated this to the Community Benefit Fund. Members were given the choice of donating to the general fund which supports low energy projects in North Somerset and near our operating plants or to the “Mend the Gap” charity which supports communities in Kenya and links these projects with North Somerset schools.
As a result of these donations £870.89 was donated to the CBF and £800.80 to the “Mend the Gap” charity.
with best wishes
Chair, Low Carbon Gordano