Frequently Asked Questions

I'm located overseas, can I still invest?

The good news is YES, you can! If you are based overseas and have a UK bank account then you can pledge as normal using either GoCardless or BACS as a payment option as you would if you lived in the UK.

If you do not have a UK bank account then you can still pledge, however you will need to choose BACS as a payment method on the online platform and make an IBAN transfer once we have hit our target. We'll also need to contact you once we've hit our target to request additonal proof of identity in order to protect us from money laundering regulations.

 

Is the offer eligible for tax relief?

Community Share offers can often be eligible for HMRC tax relief for investors as an incentive to invest in Co-Operatives or Community Benefit Societies who might otherwise struggle to attract investment.

There are a number of rules that the society (Darlington FC Supporters Group) must fulfil in order to qualify for the Enterprise Investment Scheme (EIS). One of the major stipulations is that the issuing society must own at least 90% of the subsiduary's (DFC 1883 Ltd.) issued shares and voting rights. At the outset of the Community Share offer Darlington FC Supporters Group owned 62% of the issued shares in DFC 1883 Ltd.

We are currently asking existing shareholders in DFC 1883 Ltd. to exchange their shares in DFC 1883 Ltd. for the same denomination of Community Shares (shares in both entities are £1 shares). This activity would enable Darlington FC Supporters Group to increase their shareholding in DFC 1883 Ltd.

Approval for EIS tax relief for any society cannot be granted until the offer window closes regardless. However, advance assurance can be sought from the Small Companies Enterprise Centre (SCEC) at HMRC to indicate whether the offer is likely to qualify. Darlington FC Supporters Group have requested advance assurance and we will notify all pledgees once we have their feedback.

Should we manage to raise the shareholding in DFC 1883 Ltd. to at least 90% and the HMRC approve the scheme we will be able to offer EIS tax relief to all investors pledging £500 or more. This is a limit that Darlington FC Supporters Group have set in order to reward larger investors in the offer.

Should we fail to qualify for tax relief we will contact all potential investors who have pledged £500 or more to discuss options before any money is taken.

Unfortunately shares which are exchanged from DFC 1883 Ltd. to Community Shares are not applicable for tax relief.

 

How do i claim tax relief?

Provided the offer qualifies as detailed above, Darlington FC Supporters Group will issue an EIS3 form to anyone who has invested £500 or more. The form will be distributed at the same time as share certificates.

The investor should use this form to claim the tax relief for the year in which the shares were issued, or it can be carried back to the previous tax year. If the investor normally pays income tax by PAYE and the total tax relief is less than £5,000 then the tax relief can be claimed in one of two forms: either as an adjustment to the PAYE code if the tax relief is being claimed in the current financial year, or as a carried back claim against income tax on the previous year, in which case the investor will receive the tax relief as a lump sum repayment. If the investor is claiming more than £5,000 in tax relief and currently pays income tax through PAYE, they will be asked to complete a Self Assessment tax form. If the investor already completes an annual Self Assessment form then they should claim the tax relief the next time they submit this form.

 

How do I exchange my shares?

If you have a shareholding of £100 or more in Darlington 1883 Ltd. you should have received an email detailing how you can exchange your shares for Community Shares. If you have not received this email please contact us urgently at cs@darlingtonfc.org or via the contact form on this site.

As £100 is the minimum amount of Community Shares that can be held all smaller shareholders in Darlington 1883 Ltd. will remain as-is.

 

What is the benefit of exchanging shares?

As detailed above, in order for the current Community Share issue to qualify for EIS tax relief Darlington FC Supporters Group must raise their shareholding in DFC 1883 Ltd. to a minimum of 90%

We believe that by being able to offer 30% tax relief on the Community Share issue it opens up the scope of the initiative far wider than just Darlington FC supporters as it can be seen as a tangible investment opportunity and the associated benefit is that we have a much greater chance of raising, or exceeding the stated target.

From an investors perspective anyone that holds shares in DFC 1883 Ltd. will likely never see a return on investment and for most, if not all this was accepted at the time of investment. By exchanging DFC 1883 Ltd. shares for Community Shares which are withdrawable based on certain conditions (see the prospectus for full details) it gives the investor opportunity to both earn interest, if selected, and withdraw part or all of the funds at a future date if desired.

Unfortunately shares which are exchanged from DFC 1883 Ltd. to Community Shares are not applicable for tax relief.

 

Can I retain voting rights at DFC 1883 Ltd. AGM?

Yes, in order to do this you will need to retain 1 share in Darlington 1883 Ltd. When you receive your exchange letter you will have the option to request this.

 

Can I retain a single share in DFC 1883 Ltd?

Yes, as above.