Investors have raised just over £200,000 and there are plans to reopen the pub later this month.
They have been able to claim Enterprise Investment Scheme (EIS) or Seed Enterprise Investment Scheme (SEIS) tax relief of up to 50% against their investments.
For example, an investor who subscribed £20,000 to purchase shares could reduce the tax that he or she would otherwise pay by £10,000.
Thames Valley accountancy firm James Cowper provided tax advice to the Tally Ho Community Pub group and investors, enabling them to claim tax reliefs on their investments.
Complex
Chris Lee, a partner in the tax team at James Cowper, said: “It is not well known in the pub trade, but investors in a company that owns a pub can frequently claim EIS or SEIS tax reliefs, which they can then offset against any tax that might be payable on their income.
“The SEIS and EIS tax rules are complex, yet those businesses that can offer EIS relief will find it that much easier to secure investment. While not all businesses in the leisure sector qualify, it is being increasingly used by those wishing to buy or invest in a pub or restaurant.”
James Denholm, a director of the Tally Ho Community Pub, said: “The ability to offer EIS has made an enormous difference, offering a valuable tax relief to our investors.”
The group is still seeking £30,000 to complete the renovation of the pub. Visit the pub's campaign website for more details.