Comparison of Ownership Vehicles
The following chart provides a brief overview of the various methods by which community pubs have been acquired in the past.
It is worth noting that of the 217 Community pubs started, 100% are still operational.
| Cross Guns Comparison of Ownership Vehicles | ||||
|---|---|---|---|---|
| Community Interest Company (CIC) | Community Benefit Society (CBS) | Co-operative | Charity | |
| Description & Primary Purpose | Special type of limited company, with social objectives. Primarily benefits the members of the CIC | Community owned (generally 200+ people). Objective to benefit the wider community | Generally, owner operators. To benefit the members of the co-operative | To charitably benefit the wider public |
| Regulation | Companies House and & CIC Regulator | Financial Conduct Authority (FCA) (plus Charity Commission if registered as a charitable CBS) | Financial Conduct Authority (FCA) | Charity Commission (plus Companies House if registered as a charitable company) |
| Asset Lock | Statutory mandatory asset lock to ensure assets are used for community benefit | Voluntary (but common) asset lock to ensure assets are used for community benefit | No legal requirement for an asset lock, but can adopt a voluntary one | Statutory mandatory asset lock to ensure assets are used solely for charitable purposes |
| Profit/Dividend Distribution | Can pay limited dividends to shareholders (capped at 35% of profits) | All profits are generally reinvested in the community/business. Members do not usually receive a share of profits | Can distribute profits to members based on their shareholding (or their contribution to revenue) | Cannot distribute profits to members or trustees |
| Tax Benefits | None: treated like a limited company. | None: treated like a limited company (unless also registered as a charity) | None: treated like a limited company | Extensive tax reliefs on, for e.g., income, capital gains, gift aid |
| Governance | Either a self-perpetuating board (as for a limited company); or by all members | One member, one vote, irrespective of stake | One member, one vote, irrespective of stake | Board of trustees (generally unpaid) |
| Community Pubs Using Vehicle (source: CamRA) | circa 20 | circa 90 | ||
| Summary | Designed to deliver community benefit, with a mandatory asset lock; light touch regulation; can pay some dividends | Designed to deliver community benefit, with a voluntary asset lock; generally do not pay dividends, but instead reinvest profits | Member-benefit driven, allowing profit distribution to members; less focused on the wider community than CICs or CBSs | The most restricted re. purpose and profit distribution but receive significant tax benefits |
