Members earn interest on the shares they own at a level that reflects the performance of BWCE’s projects. The interest is always paid annually and in arrears.
For information on bond interest please read the bond briefing that can be downloaded from the on the BWCE Document page here.
If you wish to cash in your shares read how to go about it and the terms and conditions here
How member interest is calculated
The 31st of March is the financial year end for BWCE. After this point annual accounts are produced and then audited. BWCE’s board will then make a proposal for the level of interest to be paid to members based on the performance of BWCE’s projects in the previous financial year and BWCE’s financial position at the year end.
Audited accounts and the board’s proposal for member interest payments are then presented at BWCE’s Annual General Meeting, usually in September, and voted on by the members. Assuming the relevant resolutions are passed by members, a statement of interest will be sent to each individual member and the payments can be made a short while afterwards.
For the year to 31 March 2017 the rate of interest paid to members on their shares was 6%.
Your interest payment and HMRC
BWCE is required to send out share interest payments gross of tax (in other words with no tax deducted) and we are also required to provide to the Inland Revenue the names and addresses of shareholders who received share interest payments greater than £250. The interest should be declared on the tax return relating to the tax year you receive the actual money (NOT for the year in which it was earned by BWCE). So for the tax return completed for example, for the year 17/18 (31 January 2019 is usually last day for filing on-line) you should declare the interest you received in Autumn 2017, even though it related to BWCE’s performance in the 16/17 financial year.
If you are completing a self-assessment tax return (SA100) the gross share interest should be inserted in box 2 Untaxed UK interest. As the interest is paid in the tax year 2017/18 it could be eligible under the new Personal Savings Allowance. Follow this link to the government website for more information
Please note this page is based on our interpretation and for information only. If in any doubt you must consult HMRC or your financial advisor.