Canary Bond for smaller investorsWe are aware that there are lots of City fans out there who would like to be involved in the Canary Bond issue but who are either unable, or do not wish, to invest the £500 minimum stake.
The Trust has offered to help such people (regardless of whether or not they are Trust members) to get involved by amalgamating their investments (subject to a minimum of £100 and in multiples thereof) into a bond which will be held in the name of the Trust, from which we will take responsibility for paying out interest proportionately as it is received.
The tax position will be identical to investors holding a bond directly, ie tax would be deducted at source at the rate of 20% and it would be up to the individual to either, reclaim tax if a non taxpayer, or, pay the extra if a higher rate taxpayer.
There will be a legal agreement between the Trust and each individual investor to set out and protect the interests of both parties.
The more difficult issue has been the 3% club credit, which would obviously be minimal for someone investing £100 and difficult to administer for us. We therefore propose to accumulate these (and other larger benefits which would accrue from being part of a large bondholding) and use them to buy items from the Club that will then be put into a draw open only to bondholders, so giving everyone a chance to benefit from something worth considerably more than their individual accumulated credits.
For more information and to express an interest please email us at email@example.com but please note that the offer is likely to become fully subscribed very quickly.