Eis master lo res(2) by Alex Sullivan

www.eismagazine.com NOVEMBER 2015 ISSUE 04

The IFA Guide to Tax Efficient Investing

DISCOVERING THE ROUTE OF INVESTMENT Guiding you through the steps of successful funding

20 YEARS

TAX AND STRATEGY

AND CELEBRATING SEIS

EIS

VCT

SITR

IHT

NEW WAYS OF INVESTING BPR

CONTENTS 4. Editor’s Welcome

A new chapter starts here. Michael Wilson explains why we started EIS Magazine, & what we hope advisors can get from it.

EIS Magazine is published by

IFA Magazine Publications Limited, The Old Wheelwrights, Ham, Berkley, Gloucestershire GL13 9QH Full subscription details and eligibility criteria are available at www.eismagazine.com ©2015. All rights reserved.

Telephone: +44 (0)117 9089 686 Editor: Michael Wilson editor@ifamagazine.com

Publishing director: Alex Sullivan alex.sullivan@ifamagazine.com

Design: Fanatic Design www.fanaticdesign.co.uk

6. News

Our monthly round-up of news stories. Keep sending us your news, please.

8. 20 Years, and Celebrating

Annabel Brodie-Smith discusses the changes since the first VCT’s were launched 20 years ago.

10. Using AIM to Mitigate IHT

Jack Rose from LGBR Capital presents the case for BPR.

12. Tax - An EIS Briefing

John Thorpe, Business Line Manager for EIS at Octopus Investments, gets down to detail.

EIS Magazine is for professional advisors only. Full subscription details and eligibility criteria are available at www.eismagazine.com EIS Magazine is a trademark of IFA Magazine Publications Limited. No part of this publication may be reproduced or stored in any printed or electronic retrieval system wihtout prior permission. All material has been carefully checked for accuracy, but no responsibility can be accepted for inaccuracies, independent research and where necesary legal advice should be sought before acting on any information contained in this publication.

16. Behind the Scenes

Film-maker Robbie Fraser talks about EIS funding to reach the big screen.

18. The Power of Compounding

Simon Ruthers discusses alternative options for pensions.

22. Bridging the SEIS Gap

Methods of bridging the gap between the new world of crowdfunding.

To stay up to date with the latest EIS news visit www.eismagazine.com

26. Open Offers

Our monthly listing of what’s currently available for subscription.

November 2015 · www.eismagazine.com

Welcome You could forgive the Chancellor for looking a little more care-worn than usual as he stood up to deliver his Autumn Budget statement on 25th November. Gone, these days, are the square-set Troy Tempest jaw (does anybody remember Stingray?) and the confident stare that used to assure us of George’s absolute certainty about the way that the economy would move briskly forward.

In its place have come the heavy scowls, the furrowed crease-lines and the receding hairlines of high office. As the government grapples with tax revenues that have fallen well below expectations - coming as they do on top of recent parliamentary defeats for some of its biggest budget-chopping plans – the temptation has grown for the Chancellor to soft-pedal the tax incentives and crack down not just on offenders but also on dissenters in general. And that’s a temptation that Mr Osborne needs to keep carefully under control if he wants to maintain his pro-business image. We’ve already seen how alternative energy funds have been eliminated from the EIS sector – indeed, it was only weeks ago that Mr Osborne stamped on the last guttering flame of possibility that renewables might still manage to squeak through the SITR rules.

EIS Magazine · November 2015

More recently, we’ve been witnessing a distinct darkening of the general ministerial tone toward film EIS projects - although at the time of writing it had gone no further than threats toward malefactors.

We’ve seen the altered dividend tax arrangements which the Chancellor mapped out earlier this year, and which will make it distinctly less attractive from now on for investors to take more than £20,000 a year (or thereabouts) in yields. Now, perhaps that’ll be a good thing for EIS and VCT funds if it drives investors toward capital returns instead. But it’s likely to cause uncertainty nonetheless. We’ve certainly become very aware of the extending reach of HMRC’s accelerated payment demands, which require payment upfront even for disputed tax sums. And which are causing serious distress for some EIS investors. Autum Budget Statement

For full details of the Autumn Statement and it’s implications for EIS, SEIS, VCT and BPR Investors, visit our website at www.eismagazine.com

Speculation was rife, in the runup to the Budget Statement, that the Chancellor might try to wind back the 10% rate of entrepreneurs’ capital gains tax – again, not an issue that should impact on EIS and VCT investors, but which would certainly put a damper on anyone planning to develop the next big tech start-up project. How does that sort of thing help to cement the government’s commitment to entrepreneurship? Answer, we don’t know. And at the time of going to press we were still waiting for the Chancellor’s final words, so please excuse us if we’ve overcooked it. You’ll find full coverage of the Autumn Budget Statement on www.eismagazine.com. But one thing’s for sure. Having set up the government’s stall for supporting EIS, SEIS, VCT and other tax-efficient measures, the Chancellor needs to be wary of back-stepping from his commitment to encouraging ingenuity, intelligent risk and enterprise. With my very best wishes Michael Wilson, Editor in Chief

4 EXCITING EIS / SEIS OPPORTUNITIES BROUGHT TO YOU BY INNVOTEC Anglo Scientific EIS 2015 The seventh annual EIS Fund from the Innvotec / Anglo Scientific collaboration provides further opportunity for private investors to invest behind the well regarded, specialist and dedicated team of technology entrepreneurs that is Anglo Scientific, under a discretionary management agreement with Innvotec, one of the UK’s longest established VC’s backingangloscientific opportunities in the broad technology sector. C R E A TING SOLU TIONS

Anglo Scientific has built a portfolio, all EIS qualifying, of highly promising tech-enabled companies and Anglo Scientific 2015 EIS, like the predecessor funds, provides the opportunity to invest in five or six of these companies. Performance across the earlier funds is impressive, an average gain on portfolio cost of 77% equating to a notional IRR across all Funds of 19%, with no fund being valued below cost.

Startup Funding Club SEIS 2015 The second annual SEIS Fund from the Innvotec / Startup Funding Club collaboration, the first having been deployed across a well-diversified, fifteen company portfolio. Startup Funding Club is one of the most successful “boutiques” working with companies seeking seed and early-stage finance, especially those companies that own proprietary intellectual property (IP) capable of being exploited globally and whose founders possess the stamina and knowhow to meet the challenge. The Startup Funding Club’s network ensures that opportunities are sourced from many of the UK’s best regarded “incubators and accelerators”. Whilst the portfolio will have a technology-bias, it will also include product based companies and those in the food sector. Integral to the success of the Fund is a mentoring programme in support of the entrepreneurs.

Odyssey Mission SEIS 2015 UK based private investors have a novel opportunity to invest in the Innvotec-managed Odyssey Mission 2015 SEIS Fund, a portfolio of early stage businesses led by Asian Entrepreneurs. Investors have the prospect of strong capital appreciation whilst helping an “affinity group” and obtaining attractive personal tax reliefs in so doing. The Fund is geared to providing start-up /early stage funding and mentoring support to the best of the next generation of Asian graduate entrepreneur that wish to build their businesses in the entrepreneurial-friendly United Kingdom, some of whom will require a Tier 1 graduate entrepreneur visa so to do. The “Odyssey Mission” itself is a big project of which the SEIS Fund is the startpoint.

OION SEIS 2015

2015

SEIS FUND

The OION 2015 SEIS Fund is an Innvotec-managed growth fund, providing private investors with an opportunity to invest in a portfolio of early stage businesses located in Oxfordshire and its surrounds, whilst offering the prospect of strong capital appreciation and at the same time accessing attractive personal tax reliefs. The companies that will form the OION 2015 SEIS Fund will use the proceeds of investment to advance them on their business growth curve and it is at these earliest stages of commercial exploitation that there is the potential to generate significant capital appreciation. The Fund benefits from the participation of Oxford Investment Opportunities Network (OION) in generating quality dealflow and the provision of mentors to support the entrepreneurs.

For full details on any of the above EIS / SEIS Funds or any other information please contact Innvotec on:

Tel: +44 (0) 20 7630 6990

Email: info@innvotec.co.uk

Web: www.innvotec.co.uk

Issued and approved by Innvotec Limited, Business Design Centre, Suite 310, 52 Upper Street, Islington, London, N1 0QH Innvotec Limited is a registered company in England & Wales. Registration Number: 2030086 Innvotec Limited is Authorised and regulated by the Financial Conduct Authority. VA0115

News Round up of the latest industry news

Latest EIS and SEIS Figures October’s figures on the Enterprise Investment Scheme (EIS) and Seed Enterprise Investment Scheme (SEIS) have just been released by HM Revenue & Customs. The key points for EIS are:

•Since the Enterprise Investment Scheme (EIS) was launched in 1993-94, just over 22,900 individual companies have received investment through the scheme and over £12.3 billion of funds have been raised. • Data for 2013-14 shows that 2,770 companies raised a total of £1,529 million of funds under the EIS scheme. In 2012-13, 2,470 companies raised £1,033 million of funds. • Data for 2013-14 shows that companies raising funds for the first time under the scheme raised a total of £840 million compared with £576 million in 2012-13.

• In 2013-14, companies from the Hi-tech, Energy & Water Supply, and Business services sector accounted for over £1bn of investment (65% of all EIS investment).

• London and the South East continued to account for the largest proportion of investment with companies in these regions receiving 69% of investment in 2013-14. For SEIS:

• In 2013-14, 2,030 companies received investment through the Seed Enterprise Investment Scheme (SEIS) and £166 million of funds were raised. This compares with 1,160 companies raising a total of £86 million under SEIS in 2012-13.

EIS Magazine · November 2015

• Over 1,700 companies of these companies were raising funds under SEIS for the first time in 2013-14 – representing £150 million in investment. • In 2013-14, companies from the Hitech, Business services, and Distribution, restaurants and catering sector made up 66% of the amount of SEIS investment received. Director General of the Enterprise Investment Scheme Association (EISA) Sarah Wadham said: “The latest HMRC data shows that funds flowing into UK businesses via the Enterprise Investment Scheme (EIS) reached a new peak of £1.529bn in 2013-14, significantly ahead of the previous record of £1.065bn in 2000-01 during the dot com boom. These new figures have exceeded industry expectations. They show companies are benefiting more than ever from vital growth capital provided through EIS by the British public, who in return for their support for UK businesses receive generous tax reliefs and the potential to make attractive returns from their investments.”

“EIS money flows into businesses spanning diverse sectors of the UK economy, spread across the country. In total almost 23,000 companies have had the chance to grow as a result of EIS since it launched in 1993. This is a testament to the enduring success of the scheme. Over that time, there have been changes to the rules which have required the EIS sector to evolve and we will soon see further changes introduced that are designed to ensure that EIS funding – and that of venture capital more broadly – is targeted at those businesses and sectors which need it most. The government recognises the valuable role EIS has played in helping UK

businesses to grow over the past 20 years, with the tax reliefs provided to private investors being more than made back in economic benefits through a thriving business sector. With continued government support, we expect to see EIS continue to deliver for UK PLC for many more years to come.”

Crowdfunded Fund

The clue’s in the name. A new EIS fund from Crowdcube aims to raise £500,000 for a venture which it says will allow investors to quickly and easily diversify their holdings in multiple crowdfunded securities. Individuals will have to make a minimum investment of £2,000.

“The Crowdcube fund is pitched as a way to easily create a diversified portfolio investing in British businesses,” according to the company news release. “The EIS or Enterprise Investment Scheme indicates the investment will be able to take advantage of some significant tax breaks that mitigates risk. Crowdcube assures that each company in the fund will be vetted.” But the company cautions against any misunderstanding of the risk. “As everyone knows, investing in early stage, growth companies is risky. Many of these small companies will fail or simply not perform. A diversified portfolio is the best method to capture gains of the successful companies thus offsetting the ones that don’t do quite so well. “The launch of the new EIS Fund comes at a time when there is a discussion in the UK as to whether or not small investors should be allowed to invest in companies for as little as £10. Some industry participants believe that a minimum bar of £1000 should be set as a form of ‘investor protection’.” Crowdcube has raised over £115m for over 300 businesses and claims to be the largest investment crowdfunding platform in the UK.

Puma Launches VCT Puma’s latest limited life VCT, labelled as Puma VCT 12, seeks to raise £30 million with a principal focus on capital preservation, combined with that it calls a determination to produce regular, taxfree distributions to shareholders from a portfolio of businesses with substantial tangible assets such as freehold property, or contracted and highly predictable revenue streams. Available to investors on the Transact platform, the fund will primarily invest in established businesses in the form of ordinary equity together with senior secured loans. “Puma’s asset-backed investment strategy continues to be popular amongst investors seeking to support UK businesses in a tax-efficient wrapper,” said Puma Investments CEO David Kaye. ”Investors in VCT 12 will benefit from the successful track record of the Puma Investments team and a strong flow of quality investment opportunities, especially with SMEs currently starved of the capital they need for growth. As a consequence, we are able to invest in companies which have substantial assets or predictable revenue streams, over which a first charge can be taken.”

Record Numbers Using SEIS The number of start-ups applying to raise money via SEIS has reached record levels in 2014/15, reaching 2,905. This is up from 2,845 the previous period under review and 1,729 before that. The figures come from specialist provider of EIS and SEIS investments Radius Equity. The firm believes that SEIS is proving a vital source of funding for start-ups at a time when bank lending is still hard to secure for many SMEs. The ‘flat white economy’ is being boosted especially, with hi-tech and restaurant/catering sector businesses accounting for a large proportion of fundraising under

the scheme. What’s more, 94% of those businesses which applied to HMRC for SEIS approval and processed last year were successful, up slightly from 93%. According to Radius, this shows that the majority of aspiring entrepreneurs using SEIS are putting clear business plans in place in advance of beginning to trade.

Director at Radius Equity Gary Robins said: “SEIS has been one of the most important innovations in business finance since the financial crisis – as shown by its continuing popularity. Funding is vital to early stage businesses – SME owners need to focus on their operations rather

than worrying about securing an initial investment and sufficient working capital to grow.” “That hi-tech start-ups in particular are benefiting from SEIS shows how new businesses are a key contributor to the dynamism of the UK economy. For the UK to continue to lead the world sectors such as FinTech there needs to be the right financial and tax environment for them to get off the ground.”

November 2015 · www.eismagazine.com

20 Years, and Celebrating Annabel Brodie-Smith, Communications Director at the AIC, reports on two hectic decades for VCTs

Twenty years after the first venture capital trusts (VCTs) were launched into a young and expectant UK climate, a lot of things have changed. Nowadays, with getting on for £3.5 billion of funds under management, VCTs feel very much like a mature sector that has taken a number of changes in its stride over its two decades. And, following the Chancellor’s Summer Budget, it appears that more significant changes are coming. We welcome the government’s commitment to secure the future of VCTs by ensuring they gain European State Aid clearance. With this in mind, how has the VCT sector fared over the past twenty years?

EIS Magazine · November 2015

£429 Billion in 2014/15 The first VCT launched was Murray VCT in October 1995, which later merged with Murray VCT 2 and VCT 3 before becoming Crown Place VCT, a company still in existence in 2015. Both Baronsmead VCT and Northern Venture Trust were launched in November 1995 and exist in their original form today. The sector is now made up of 85 companies, 3% of the investment company industry overall, and accounting for £3.4 billion worth of assets – an all-time record high. In the 2014/15 tax year, VCTs raised £429 million, the fourth highest level ever of annual funds raised, and the highest amount raised since 2005/06.

The popularity and current demand for the VCT sector is due to a number of reasons - not least, of course, the tax benefits if bought at launch. Investors will receive up to 30% income tax relief on an investment of up to £200,000 in VCTs, if the shares are held for at least five years. Capital gains investment by the VCT is also free of corporation tax, and may be distributed as dividends. Plus, capital gains and dividends for VCT investors are tax free.

That’s good news for the high earners who are currently caught by the Chancellor’s announcements on pension tax relief. With pensions freedoms now a reality, the importance of tax planning for those in or near retirement has never been more important, and many investors will be looking for alternative methods of tax efficient saving. VCTs are increasingly becoming an attractive option to supplement traditional pension arrangements, from both a growth and an income standpoint.

Impressive Performance

Of course, the early stage companies invested in by VCTs makes them a riskier investment, regardless of the tax benefits. Over a number of time periods, however, past performance has been positive.

The average VCT is up 33% over three years, 57% over five years, and 78% over ten years. The VCT Generalist sector is doing even better over each time frame, particularly over the longer-term, up 34% over three years, 61% over five years and 91% over ten years.

The VCT AIM Quoted sector, despite the somewhat disappointing performance of the AIM market overall, was up 53% over three years and an impressive 77% over five years, outperforming the average VCT, and even the investment company industry wide averages of 39% over three years and 62% over five years, which take into account all investment companies.

8.3 Distribution Yield

The tax free status of VCT dividends is also significant from an income perspective, given the changes announced by the Chancellor regarding the taxation of dividends. There will be no impact on dividends from shares held in ISAs and pensions, which remain tax free, or on investors with modest dividend income that stays below the £5,000 allowance. However, the new dividend tax rates will see those who receive significant dividend income paying more - with additional rate taxpayers paying 38.1%.

With this in mind, it is worth taking note of the relatively high yields of the VCT sector which are tax free. The overall average VCT distribution yield is an impressive 8.3% (at 31 August 2015), with the VCT Specialist: Media, Leisure and Events sector the highest yielding sector with an average at 22%. The VCT Generalist sector, the biggest in the VCT universe by membership (52 VCTs) and assets (£2.3 billion), has an average yield of 8.9%, and the VCT AIM Quoted sector offers an average yield of 5.7%.

What else is new?

Key changes announced by the Chancellor this year include the ending of any VCT investment in management buy-outs – and also a lower-thanexpected ‘age of company’ investment condition, which stipulates that a VCT not able to make a qualifying investment in a company more than seven years after its first commercial sale.

A longer time period of 10 years will apply for ‘knowledge based’ companies. No time period will apply where the total amount invested represents more than 50% of the annual turnover (averaged over five years) of the investee business. The Chancellor has also introduced a lower than expected lifetime investment limit, which will be £12 million rather than the £15 million previously announced. An exception will be made for investment in ‘knowledge intensive’ companies, where the limit will remain at £20 million. Subject to State Aid approval, which has not yet been given, these rules, announced in the Summer Finance Bill 2015 will be announced from Royal ascent, which is expected to be in November. The VCT sector has faced a number of rule changes in the past, and the industry has effectively managed these changes. We’re confident that the VCT sector can and will continue to accommodate differences to the scheme, and look forward to the next twenty years.

9 · www.eismagazine.com November 2015

Using AIM To Mitigate IHT Jack Rose, Business Development Director for Tax Products, LGBR Capital, Presents the Case for BPR Advisers looking to reduce their clients’ inheritance tax (IHT) liability are now starting to become aware that they should consider looking at AIM stocks, which not only offer tax planning opportunities but investment opportunities too. But the technicalities are not always clear to all of us, so I hope the following will be helpful. The Issue The mounting issue of IHT and how best to mitigate it is a well-documented and discussed problem. But before we look at how investing in AIM stocks can help individuals mitigate IHT, it is important to outline what exactly IHT is and who might be affected by it.

IHT is a tax levied on the value of a person’s estate when they die. As it currently stands, if your estate is in excess of £325,000 at the time of your death, then any amount above this threshold (otherwise known as the nil rate band (NRB) is taxed at 40%. You can transfer your NRB to your spouse to increase your effective NRB to £650,000.

In addition starting from 2017/18 there will be an additional £100,000 of relief given to one’s primary residence, rising to £175,000 per person in 2020/21. This will essentially increase overall NRB to £500,000 per person - or £1 million if transferred to a spouse. There are a number of caveats and conditions to this additional band, including a taper on the relief on estates over £2 million, and there’s also a stipulation that property must be passed to a direct lineal descendent such as a child or grandchild.

The Size of It

To give you some idea of the issue: UK tax receipts from IHT in 2014/15 were

EIS Magazine · November 2015

circa £3.8 billion, up almost 12% on 2013/14. That was almost 60% more than the £2.4 billion recorded in 2009/10. What’s more, the number of estates affected by IHT has almost doubled since 2010/11 from 17,000 to 28,000 in 2013/14. Once thought of as only a tax for the wealthy, it’s now forecast that IHT will affect one in 10 people in the UK by 2018/19.

This is not a new phenomenon, but nor is it a trend that looks likely to change any time soon. There is no single factor driving this growth – rather, there are a whole nexus of factors that combine to complicate the issue. As the babyboomer generation reaches its 60s, we have seen an increase in the average age in the UK, which has risen from 34 in 1974 to an all-time high of just over 40. Meanwhile, the percentage of those over 65 has risen from 15% in 1974 to 18% in 2014 - an increase of over 3 million people. More importantly, perhaps the Office of National Statistics estimates that the babyboomer generation controls approximately 80% of private wealth in the UK. It is estimated, for instance, that over 65s own approximately £828 billion of property.

When you combine the above statistics with perhaps the most significant and well-documented driver behind the IHT receipts - the continued rise in asset prices, particularly property - you can start to see the issue facing many people. In London, the average price for a property has just exceeded £490,000, and the average price across the whole UK is now over £200,000. When you consider that the NRB has been frozen at £325,000 since April 2009, and that it will remain so until at least 2020/21, it is easy to see why IHT receipts keep rising year-on-year. No doubt the additional NRB resulting

from the new property transfer concession will help to ease the problem for homeowners in the South East in particular but, however as property and other asset prices continue to rise, it is easy to see the benefits of the additional band being eroded very rapidly.

The BPR Solutions

Daniel Defoe first coined the phrase, “nothing is certain except death and taxes”. While this still rings true, we can say that with careful planning IHT liabilities need not be a foregone conclusion.

There are a number of different ways of mitigating IHT. These vary in scope and complexity, from a simple will to trusts and gifting, whole-of-life insurance and even equity release. However, the solution that offers the greatest flexibility and control (and has grown enormously in popularity in recent years) is business property relief (BPR). Originally drafted into legislation back in 1976, BPR was designed to enable family businesses to be passed from generation to generation. Since then the parameters by which a company qualifies for BPR have been widened allowing more people to access it as a means to mitigate IHT. Those shares that qualify for BPR are ruled to be outside the shareholder’s estate after just two years of ownership. Obviously that’s significantly quicker than many alternative options out there - but it also offers a good degree of flexibility and control because you ultimately still own and have control of the shares. Over the last decade we have seen an enormous growth in retail products designed by providers that take advantage of the BPR rules to create vehicles by which private investors can invest into and therefore mitigate their IHT liabilities. A recent report by Intelligent Partnership suggests there are some 50 products by 38 providers structured to use BPR.

Predominantly, people access BPR through a discretionary management agreement with a provider, which will give investors access to BPR qualifying assets. This can be either a specific unquoted company, or a number of unquoted companies that undertake in a BPR qualifying trade, or alternatively often a portfolio of AIM quoted companies.

Why Should You Look at AIM?

With so many options for BPR out there in the market, why should an investor consider AIM-based BPR solutions? Well firstly it allows for the option of capital growth as well as IHT mitigation.

The majority of the non-AIM strategies are purely cash plus returns perhaps returning in the region of 1% - 4% after fees in the majority of cases. Therefore it can be a complementary strategy, providing a balanced approach when used in conjunction with a nonAIM strategy. Secondly, is an increased diversity in the range of underlying companies. AIM portfolios can typically be anywhere between 20 and 40 stocks - more than the unquoted non-AIM BPR strategies, which typically can be anywhere from one to three.

In addition, AIM companies have the crucial benefit of being listed, which means they are priced daily and there is a good corporate governance structure. This offers a level of transparency over and above many unquoted non-AIM BPR strategies, something that many investors like.

ISA Rule Changes The last and probably the most significant reason for consideration is ISAs. Since the rules changed in 2013 to allow investors to hold AIM stocks within an ISA it has given investors the ability to have tax-free income and growth whilst also mitigating IHT by holding BPR qualifying AIM stocks. ISAs have been around since 1999 when they replaced PEPs. Hugely popular with the wider UK retail market, by the end of 2014/15 the market value of adult ISAs stood at £483 billion. Of those holding ISA accounts the largest category are those 65 and over, approximately 6.2 million individuals. Another important change to ISAs recently has been the increase in the annual investment limit to £15,250, allowing individuals to save significantly more than was previously permitted.

Dispelling Some of the AIM Myths

Many investors perceive AIM to be filled with junior resource stocks and small start-ups. And that’s an issue that we really need to re-examine. Believe it or not, there are now approximately 1,100 companies listed on AIM, with a combined market capitalisation of approximately £72 billion. Although it might be case that many of these junior resource stocks have traditionally caused a good deal of

volatility and underperformance in the overall AIM index, the reality is more nuanced. There are in fact over 40 different sectors across this index with companies operating in over 100 countries. Of these, 318 companies have a market cap in excess of £50 million hardly just small start-ups. And recent research has suggested that the AIM 50 Index (made up of the largest 50 AIM companies) has returned a startling 37.5% in the last five years, almost double the 19.5% return from the FTSE 100.

Another important cause for optimism is that, unlike the main indices, you do not ‘buy the average’. Investors in the main markets are often closely correlated to the index either via a tracker or indeed an active manager; it is not the case with investing in AIM where stocks are often under researched providing opportunities for experienced fund managers to exploit opportunities and outperform the index. This can clearly be seen by the performance of the 10 n AIM-focused VCTs. Their average total return over the last five years is 52.3% compared with -4.3% for the FTSE AIM All Share. The AIM Index is truly a stockpicker’s market. With all this taken into account, there is an argument to be made for those clients who have large ISA accounts and are comfortable with having exposure to AIM, to utilise the services of an experienced investment manager in helping them create a portfolio of AIM stocks that qualify for BPR – and will help them reduce their IHT liability.

November 2015 · www.eismagazine.com

Tax - An EIS Briefing John Thorpe, Business Line Manager for EIS at Octopus Investments, Says it’s What You Know, Not Who You Are Since the EIS was launched in the 1993/94 tax year, more than 22,700 companies have received investment through the scheme. Introduced by the government to encourage investment into smaller companies, its popularity has increased notably over the years, both among entrepreneurs looking for finance, and investors looking to gain exposure to the exciting smaller company space and the government-approved tax incentives that an EIS offers. EIS is doing a great job of fulfilling its policy objectives: the latest record fundraising figures from HMRC show that inflows last year reached £1.4 billion - a 36% increase on the year to April 2014. This was far in excess of the previous record of £1.1 billion back in 2001. And, according to HMRC, a total of more than £12.2 billion of funds have been placed into EISqualifying companies.

Things moved forward again in 2012, when the government sought to extend and deepen its support for smaller companies with the creation of the ‘Seed Enterprise Investment scheme’ (SEIS). SEIS recognises the particular difficulties faced by very early stage companies looking to attract seed investment, and addresses it by offering income tax relief at a higher rate (45%) than offered by EIS. An EIS is a high risk product, and not the type of investment to be invested in without careful consideration and, in most cases, professional advice.

EIS Magazine · November 2015

So what is driving the surge in adviser recommendations for EIS? The answer is that more advisers are recognising EIS as an attractive tax-efficient investment, and also a versatile planning tool. Over the last decade we’ve seen firsthand the development of the market and the growing interest among advisers in how this product can be used as part of a diversified portfolio of investments. EIS is much more than a product offering investors certain tax breaks. That said, of course, there are some significant tax benefits for EIS investors to get excited about.

Upfront Income Tax Relief

An EIS offers the 30% income tax relief on investments of up to £1 million each tax year, provided the investment is held for a minimum of three years. This could make it an especially useful tax planning tool for high-net-worth investors and the self-employed who might have profits wrapped up in their business. There’s also a ‘carry back’ facility with EIS, which means that investors can use this year’s investment to reclaim income tax already paid in the previous tax year.

So in practice an investor could invest £2 million over two years and recover up to £600,000 in income tax (the maximum amount of relief spread over two tax years). However, the tax relief claimed can’t be more than the tax paid in the relevant years.

Inheritance Tax Exemption

An EIS can also help investors to plan for inheritance tax (IHT). EIS-qualifying investments typically become exempt from IHT after just two years, as long as the investor still holds the EIS when they die. The IHT exemption is due to ‘business property relief’, another government initiative designed to support smaller businesses.

Loss Relief A little-known benefit that comes with EIS is loss relief. Unlike many investments, any losses incurred within the EIS portfolio attract tax relief.

Each individual holding is assessed separately for loss relief, meaning that any holding that has fallen in value at the time of sale will qualify for loss relief (taking into account EIS income tax relief which is retained), irrespective of the overall portfolio performance. Investors can offset any losses on their EIS investment against either income or capital gains and reduce their overall tax bill.

Capital Gains Deferral

Perhaps the most attractive tax planning aspect for many advisers is Capital Gains Tax (CGT) deferral. An EIS is currently the only investment product that allows investors to defer paying tax on a capital gain for the lifetime of the EIS investment, by investing the gain in an EIS. This is particularly relevant for clients who have been finding it difficult to release equity from an asset that is ‘pregnant’ with gains – for example a second property – perhaps as part of their IHT planning.

For a higher-rate taxpayer, selling a second home brings with it a CGT bill of 28% on the gains made on the sale. And yet keeping the second home would likely mean it remains part of their taxable estate when they die. This means potentially making their beneficiaries liable for 40% IHT on the value of the property. The ability to use an EIS as a way to defer capital gains offers investors a more tax-efficient solution.

Investing the proceeds of a second home sale in an EIS defers the tax liability on that gain, provided that the investment is held for a minimum of three years. And of course, investors at an age where IHT is a real concern can simply keep their assets in the EIS until death, should they wish, as CGT is not passed onto beneficiaries and the investment in the EIS will become exempt from IHT after two years.

Assessing Client Suitability

Itâ&#x20AC;&#x2122;s true to say that the importance of different incentives varies from client to client, and according to age too. For example, IHT is naturally a more pressing issue for more elderly clients, whereas the income tax relief might become less relevant â&#x20AC;&#x201C; since incomes are usually lower later in life.

For younger investors, however, the 30% upfront income tax relief can be compelling - especially for wealthy clients who may wish to combine this benefit with solutions to mitigate CGT on sales of assets, or who have already made significant pension contributions.

Investing in Ideas, Enterprises and Industries of the Future Tax incentives are not the only consideration. Investors tell us that the tax advantages are a great way to encourage their initial investment, but they also want to know there is a compelling investment case for the sectors and companies they will be investing in through their EIS. Some companies listed on the Alternative Investment Market can qualify for EIS investment, as well as unquoted companies.

Over the last 21 years, EIS has played a key role in helping to build businesses and to drive investment into certain sectors. An important alternative characteristic of EIS investing is that investors get to play their part in helping to achieve this and drive much-needed investment in certain high-profile sectors, for example, renewable energy.

Solar Performance If advisers want to see evidence of the success of offering tax incentives for growing industries, look no further than the solar sector.

In 2010 the government introduced special feed-in tariffs (financial incentives) for those generating renewable energy to encourage greater uptake of electricity-generating schemes, including solar farms. Investments into companies that assemble and run solar farms also qualified for EIS relief. According to the Department of Energy & Climate Change (DECC), in the second quarter of 2015 renewable energy installations including solar accounted for a record 25% of all electricity generated - up from 9.7% in 2012.

November 2015 Âˇ www.eismagazine.com

Understanding the Risks Of course, investors need to understand the risks associated with an EIS before making a decision to invest. For a start, potential EIS investors should note that they won’t easily be able to access their investment during the three-year minimum holding period. If they do withdraw their funds within this period they will lose the benefit of the tax reliefs. The holding period starts from the date of investment or the date on which each individual company starts to trade (whichever is later). This means that the total amount of time an investor would need to hold the investment to qualify for the tax reliefs before being able to withdraw their money could be closer to four years, or in some instances even longer.

Advisers, of course, need to make sure their clients understand that smaller companies can be more volatile and have a higher failure rate than more established businesses, and so clients need to be informed that an EIS portfolio must be considered higher risk than many other investments. There is also no guarantee about the timing of

EIS Magazine · November 2015

any sale of EIS holdings, which would allow money to be returned to the investor. EIS shares can prove hard to sell, and they are much less ‘liquid’ than shares traded on a stock exchange. Obviously, investors look forward to a successful outcome, but the value of this investment can fall as well as rise, and investors could suffer the loss of some or all of their capital. Provided an investor is comfortable with the risks associated with investing in an EIS, advisers may find it well worth having a conversation based on how an EIS could be used to meet a range of different tax-planning requirements and financial goals. The recent pension changes, the growth in UK entrepreneurship and increased awareness of smaller company investing have all contributed to more people looking to access the benefits of EIS.

An EIS is not suitable for everyone, but it’s versatility as a planning solution combined with some of its unique incentives, including backing British businesses that are making a meaningful contribution to our economic growth, makes it easy to understand why it is gaining popularity.

Market insight, as deep as the ocean At Mariana we understand what makes a great tax efficient investment and what doesn’t. A strong ethos for capital preservation, careful planning, modest but secure returns and complete transparency, you’ll soon see why we stand out from the crowd. We will soon be launching a range of estate planning and EIS solutions, for further information please call one of the team on 020 7065 6699 or visit www.marianacapital.com

Mariana Capital Markets LLP is authorised and regulated by the UK’s Financial Conduct Authority. FCA registration number is 551170. It is incorporated in England and Wales, Company No. OC363748.

JANUARY 2015 · www.eismagazine.com

Behind The Scenes Kenny Kemp of City Partnership Talks to a Filmmaker about How EIS Funding Helps Puts Ideas onto the Big Screen.

Film-maker Robbie Fraser is a busy creative working on a slate of interesting projects - including turning a popular short story into a cult sci-fi film. The producer, who owns and runs Pure Magic Films in Glasgow, and his colleague and co-producer, Lyndsay Goodall, have been granted an option to make a film from an undisclosed author’s collection of novellas. They are looking at EIS funding to make this reach the screen. The Project The project has been granted seed funding from Creative Scotland to develop a script – now Fraser’s task as the fund-raiser is to raise £2 million to get the project up and running in 2016.

EIS Magazine · November 2015

“It’s an exciting project that has the backing of Creative Scotland. Now we are looking at ways of releasing commercial funding for the film. Our main concern is to ensure compliance with the letter and spirit of HMRC’s EIS guidelines. This is important, so we can protect the level of relief that investors can expect,” he says. “We are exploring this, including an innovative EIS solution, which could apply across a slate of projects. On the face of it, EIS or a SEIS mechanisms looks like they could be a really effective way of doing it.”

The Heritage

Having a well-known author’s name attached will help interest sophisticated investors because it brings a cult international following. “Coupled with the sci-fi genre, we feel this all stacks up commercially,’’ says Robbie.

From Downton Abbey to Wolf Hall, from James Bond to Legend (a film about the Kray twins), the UK punches well above its size when it comes to cultural capital that is exported around the globe. Television and movie-making is a large part of this export business, but it is notoriously difficult to define public taste, so funding feature films is a risky business. However, more creative companies across the UK are considering how EIS schemes can allow them to develop new projects, although there are some obvious hurdles for investors when it comes to a single film.

Film-making involves a series of stages with varying degrees of complexity, but starting with the script and the development, the pre-production, the principal photography or filming, and then the post-production work. Production expenditure is the main funding requirement, with core

expenditure a subset of this that encompasses pre-production, principal photography and post-production.

The EIS Film Requirements

Projects looking for tax relief must satisfy and meet specific criteria in the UK. Firstly, the film has to be for ‘theatrical release’, which means the public paying to watch it in a commercial cinema.

The Corporation Tax Act 2009 has an overview of tax relief for film productions. At the outset, all films must pass the cultural test and must be approved by the British Film Institute, under the Films Act 1985. The certification is a points system, with the pass mark 18 points out of a possible 35, with points for principal photography, special effects, visual effects and English language.

Under legislation which came in on 29 January 2015, a film that’s set in the UK or Europe, with lead characters who are British or European, and based on British or European material, all gather four points. If it then demonstrates British creativity or heritage it can gather another four points. Companies which qualify under this test can submit tax relief claims to HMRC.

For films with a core expenditure of £20 million or less, the film production company can claim payable cash rebates of up to 25% of UK qualifying film production expenditure. Over £20 million, the company can claim the 25% on the first £20 million with the rest qualifying for a 20% tax credit. The calculation of taxation on future profits is fraught with difficulty, but a rule of thumb is that total cost to date incurred over the estimated total costs multiplied by total income gives a figure for tax purposes.

The Funding Proposal In Fraser’s case, the producers are looking at various partners to help get the filming underway. “We aim to mix four types of finance in our plan for a roughly £2 million budget,” he says. “There is public seed funding from Creative Scotland. There’s industry cash - we have interest from a commercial film funder, to whom we are looking for equity, presales and a distribution deals. There are private high net worth investors; and finally there’s a UK Film Tax Credit that’s worth up to 25% of the budget.

Budget Target

There are so many different ways of structuring things.”

The Future

Robin Smeaton, managing director of the City Partnership (UK) and company secretary for a number of London-based VCTs who have investments in the UK’s creative industry, sees niche opportunities for sophisticated high net-worth investors who are perhaps film enthusiasts. “City Partnership believes EIS offers an attractive addition to the fund raising options for film and theatre production. Many high net worth individuals already either invest in or donate to such production and the tax incentives available through EIS may well encourage significantly more to do so,” he says.

Of course, there is simply no guarantee that a film project will reach all its milestone and make it into the cinemas around the country. It depends on a number of factors. While someone such as Robbie Fraser has his eye on raising funds, he is equally determined that critical acclaim for the team’s creativity will in the end drive an investor’s return.

£2 Million

November 2015 · www.eismagazine.com

EIS and Retirement: The Power of Compounding Simon Ruthers, Senior Manager for Business Development at Oxford Capital, says We Shouldn’t Underestimate the Effect that Compounding Investment Returns and Tax Relief Can Have on Long-Term Portfolios

Albert Einstein, on compound interest.

With pension funding limits becoming more restrictive, many advisers are seeking alternative tax efficient savings options for clients saving for their retirement. And with the options closing in fast for clients who are fully invested in pensions and ISAs, or who are looking to diversify their options. That’s when an annual EIS subscription can offer a valuable alternative which many are inclined to overlook.

18 18

EIS Magazine · JANUARY 2014 EIS Magazine · November 2015

Pensions: Not the Only Option Any More For many clients, pensions have always been the default option when saving for their retirement. But as we’ve seen, following a period of substantial change, many clients now find themselves unable, or in some cases unwilling, to fund pensions. Indeed, it has been suggested by some commentators that someone aged 40 with a pension fund of just over £400,000 might need to stop funding pensions, simply in order to stay within the proposed lifetime allowance

of £1 million. And that’s even when assuming that the growth in the fund exceeds any increase in the lifetime allowance by as little as 3.5% per annum. This sobering thought presents financial planners with a number of challenges - since, although legislation has changed, the need to fund for retirement remains unaltered.

As a result, many advisers need to evolve their business models in order to meet their clients’ needs. In fact, the recent pension changes could deliver some welcome benefits to their clients, while improving the business mix for advisers.

Benefits to Investors of Including EIS as Part of Their Retirement Savings Greater diversification: solutions such as EIS will provide investors with the opportunity to further diversify their portfolio into asset classes that may not currently be represented in their ‘retirement fund’. Flexibility: should a client’s circumstances change, unlike a pensions where benefits can only be taken from age 55, an EIS can be structured to provide access to cash irrespective of their age.

Regular review points: the EIS is designed to return the proceeds of the investment to investors as each company in their portfolio is sold. As these proceeds are paid in cash, and typically tax free, this provides the opportunity to ‘rebalance’ a client’s longterm strategy. If they decide to reinvest into EIS, not only will they benefit from another round of income tax relief, it is also possible to preserve the inheritance tax (IHT) and capital gains tax (CGT deferral benefits.

Tax planning opportunities in retirement: by accumulating retirement savings in a variety of different tax wrappers this provides greater opportunities to improve a client’s tax position when they start to take benefits.

How Do They Compare?

It would of course be wrong to suggest that an EIS offers a direct substitute for a pension. Instead, it would be more appropriate to consider EIS as a complementary solution, which supports a balanced planning strategy.

November 2015 · www.eismagazine.com November 2015 · www.eismagazine.com

19 19

EIS

Pension

Income tax relief

30%

At marginal rate (up to 60%)

Lifetime fund limit

Unlimited

Investment options

Typically a portfolio of shares in UK unquoted smaller companies

£1.5 million (expected to reduce to £1 million from April 2016)

Maximum investment qualifying for income tax relief (per annum)

Access Tax treatment of income payments Ability to take lump sum

Treatment on death

One of the most important differences is that, unlike a pension, an EIS will invest exclusively in shares in unquoted trading companies. It is therefore important that the client fully understands the associated risks and for these to be consistent with their risk profile, as well as being able to sustain loses. Even here the loss reliefs available on EIS can significantly mitigate any investment losses.

EIS in Action

The following case study demonstrates the benefits that EIS can bring to a retirement savings strategy. Alex is a businessman, aged 40, who is willing to commit £25,000 a year to an EIS over 20 years as part of his retirement savings strategy.

EIS Magazine · November 2015

£1 million

£40,000 - this reduced for those with income over £150,000 and tapers down to £10,000 for those with income over £210,000

A broad range of investment options, including management and specialist funds, together with selfinvestment

Investments must be From age 55 held for at least three years to qualify for income tax relief Not applicable

Entire fund may be taken tax-free, provided the shares have been held for three years

Taxed at marginal rate of income tax

Fund may be taken in full, of which, 25% may be taken tax-free

Tax-free provided the May be taxed at up to 45% although in some cases investment has been may be taken tax free held for two years Alex’s adviser has recommended an investment strategy that aims to provide liquidity at the start of the fifth year and a relatively modest target return of 10% during this period (similar to a number of infrastructure EIS available on the market which target 10% to 15% return). This strategy ‘recycles’ the original investment (and growth) relatively quickly thereby compounding returns and tax reliefs. The total investment over the 20-year period is £500,000.

Key Highlights - by Following This Strategy: - in year nine, the tax relief available is equivalent to the current year subscription i.e. the strategy become self-funding.

- by the end of the investment period, the tax relief received will exceed the contributions paid. - at the end of 20 years, the client will have a total return of approaching £1.125 million. This includes the contributions paid of £500,000. As with any model, reality is inevitably different and will be determined by the exact timing of the exits, together with the level of growth achieved. The table below provides sensitivity analysis in a number of scenarios – including examples where losses as well as profits are incurred in the underlying portfolio.

Analysis: Including Tax Relief and Investment Performance

Scenario 1 - as above

Scenario 2 - Reinvestment achieved in year four with 10% growth

Scenario 3 - Reinvestment in year five and investment value falls by 10%

Year 5

173,000

184,000

167,000

Year 20

1,125,000

1,369,000

804,000

Year 10

Year 15

Other Situations...

413,000

728,000

As mentioned earlier, EIS can be extremely beneficial to individuals wishing to save for their retirement but who are affected by the recent changes to pensions. However, advisers often have clients who, due to their circumstances have always found it difficult to save as much as they would like into a pension â&#x20AC;&#x201C; listed below are just a few examples. Business owners: business owners electing to take dividends, rather than salary, can restrict their ability to contribute

461,000

844,000

to a pension. EIS can provide a tax-effective way of extracting profits from a limited company by mitigating the personal income tax liability arising on dividends

Landlords: as rental income arising from property rental do not qualify as relevant earnings, clients who derive most of their income from property often find they are only able to make modest contributions to a pension. As the income tax relief provided by EIS can be used against income from any source this, when combined with the potential to achieve tax-free capital gains, may offer a compelling solution.

358.000

571,000

Planning for Retirement In conclusion, arranging a fund for retirement remains a priority for many clients.

In an uncertain world, achieving diversification at both an asset and product level can help reduce the impact of any future changes whilst potentially offering greater flexibility. It is for this reason that EIS continues to grow in popularity as it can provide a further dimension to a clientâ&#x20AC;&#x2122;s retirement saving strategy.

November 2015 Âˇ www.eismagazine.com

Bridging The SEIS Gap Michelle McGagh Reports on an Innovative Seed Project for EIS and SEIS Investors

When it comes to start-up investing, it can be difficult for advisers to keep control of money that clients are intent on ploughing into crowdfunding schemes. But now a new service aims to bridge the gap between the new world of crowdfunding and financial advisers. Seed EIS Platform is an investment network that takes advantage of the generous tax advantages offered by EIS and seed EIS (SEIS). It was masterminded by financial adviser Mark Insley, managing director of Ascot Wealth Management, who was looking for a way to marry his interest in alternative investments with his clients and found

EIS Magazine · November 2015

it was difficult for clients who were operating outside of the angel investor space to access new companies for investment purposes.

After spotting a niche for a network where SEIS and EIS compliant investments could be accessed, Insley, alongside managing director Daniel Rodwell, developed the platform with the aim of opening it up to other advisers who wanted to explore the alternative investment world.

Single Company Focus

“We developed the platform to assist wealth managers and advisers in offering EIS and SEIS investments to their clients,” says Rodwell. “Focusing on single company EIS and SEIS.”

“An adviser’s high-net-worth clients may wish to invest in a friend or family member’s business, making a single company investment utilising the tax breaks of EIS or SEIS. Seed EIS Platform can assist the adviser in setting up the company to ensure HMRC compliance, perform due diligence on the investment proposition and also source co-investment through its network of platform investors. A key factor for the adviser is that investment is made in a compliant manner and they retain control.”

Avoiding Disintermediation

Alternatively, the platform enables advisers and their clients to build a portfolio of tax efficient single company

investments, says Rodwell.

“Clients can use the platform to invest in a range of EIS and SEIS investments, diversifying their portfolio of alternative investments“.

With the rise of crowdfunding and its increasing acceptance as a mainstream investment, it is easy for advisers’ clients to take investment matters into their own hands. The Seed EIS Platform allows clients access to alternative investments while allowing the adviser to keep the funds invested as part of the client’s assets under management, providing the best of both worlds for both client and adviser.

“Advisers can be disintermediated by crowdfunding,” says Rodwell. “We work with advisers to ensure they maintain control of the client assets and access controlled and compliant deal flow. The platform provides easy access to company information and due diligence, as with crowdfunding platforms; however, [the platform] enables advisers to manage advised client investments or introduce clients direct for execution only services.” Rodwell adds that using the platform means the money is brought “in house” and kept under an adviser’s asset under management, rather than being lost to a crowdfunding website. “We work closely with the (government-funded) Growth Accelerator scheme…which assists early stage businesses in order to deliver sustainable economic growth. And we work with a number of accountants and solicitors…and we have affiliations with incubators and accelerators in the…UK technology scene. This gives us access to many exciting high-growth companies, single company

New world of crowdfunding

investment opportunities that often don’t get access to the advised investment market.”

Due Diligence

Seed EIS Platform doesn’t just offer the technology and tax wrappers that enable tax-efficient investing for adviser clients - it can also offer peace of mind for advisers concerned about the level of due diligence sitting behind crowdfunding investments. Seed EIS Platform works with a number of analysts to ensure the suitability of the businesses included on the platform including director and credit checks, and areas of risk within the business so investors can invest with a rounded picture. Different tiers of due diligence are available to suit the adviser’s compliance requirements, including independent reports.

The start-up companies mostly come from the extensive relationships the platform has within entrepreneurial and start-up networks. “We have built relationships with top-end incubators and accelerator groups, accountants and solicitors,” says Rodwell. Partnering with growth incubators means that the businesses joining the platform have a better chance ofsucceeding, he says, because of the support and guidance they receive.

Understanding Risk

“By definition, early stage businesses have a high risk of failure, although failure rates are falling due to the network of support and mentoring available within the UK at this time. This underpins the importance of creating a diversified portfolio of business,” said Rodwell.

Statistics state that seven or eight out of 10 start-ups fail but Rodwell said it is now closer to five in 10 because of greater assistance from the government.

No Charges to Clients

There isn’t a minimum investment figure, but the lowest figure that has been invested is £2,000 and it starts more typically at £5,000; average investment size is £17,000, he says. Whereas there are normally charges involved in investing in EIS and SEIS, the Seed EIS Platform does not charge adviser clients anything. Instead, it takes a success fee from the businesses, so that the client benefits from the full tax relief. Rodwell says that advisers are under growing pressure from clients to start looking at angel investing – and, he says, they are now reporting that clients are increasingly interested in small company investments. However, there is an understandable fear of the risk associated with the space, and a lack of understanding of the tax reliefs.

Even though the platform performs its own due diligence, Rodwell warns that clients and advisers should be under no illusion that investing in start-up businesses carries investment risk, and that it only works for “suitable clients”.

Financial Advisers

November 2015 · www.eismagazine.com

A Compliance Tool David Stamp, principal of Portsmouth-based Independent Financial Solutions, is already a user of the Seed EIS Platform and a proponent of alternative investments. He started advising on EIS “about five or six years ago”, utilising them for tax planning. He says that over time he moved away from using the main players in the EIS market and got “more involved” with smaller companies, after being “let down by some of the main players”. So when he first heard about the platform he thought it could help with the compliance and due diligence element of investing in small companies through EIS. “We thought we could use it as our compliance tool, and we have had a lot of discussions [with the platform] around what they should be doing in terms of due diligence,” he says. “From our point of view, we can show a second level of due diligence when recommending EIS investments.” Stamp says that the EIS investments

he advises on typically have a “personal” element attached for the client. “We try to give clients a range of options that we can build into an [EIS] portfolio,” he tells us. “If there are a few investment that the client would be comfortable with, we present, say 15 and they pick five…We feel that there has to be a personal connection with it” That Hands-On Feel For example the RAM Capital Investment EIS that offered investment in show jumping horses was a particular favourite of Stamp’s clients. “A lot of people were interested [in RAM] and we raised a lot of money, and it was very successful,” he said. “People like bars and pubs that they can go into, and have a drink, and say ‘I own two bricks of this’.” Stamp is keen to take his links with EIS investment further and put together his own portfolios, citing exciting opportunities such as an American start-up that has created a breathing monitor that can predict asthma attacks.

The Pensions Opportunity The restrictions on pension contributions in recent years, with the reduction of the annual and lifetime allowances, means that more people will be looking to alternative investments to shelter their money tax efficiently. “There is a time in the next year where there will be a massive opportunity for EIS and SEIS,” says Stamp, adding that advisers who call themselves independent should already be looking at the market. However, he adds that “independent due diligence” on the EIS and SEIS investments is needed for advisers to be sure they’re getting it right. “SEIS and EIS structures are fantastic… [advisers] need to be in a structure to put [the investments] forwards and [the Seed EIS] platform, if developed further, will go in the right direction and if we can develop something where we can get more advisers comfortable with [EIS and SEIS] then it will move on.”

Some Examples of Investment on the Seed EIS Platform The Bottle Shop A craft beer distributor and events company founded in 2010. It raised £185,000 to add a second location in London to its existing Canterbury premises. Since it received investment from five investors it has grown its revenue from £120,000 in 2013 to £1.2 million in 2015 and created seven full time jobs. GlazeAlarm

The wireless security product manufacturer raised £321,000 from 11 investors in 2013 and the valuation has grown from £900,000 to £5 million and four full-time employees have been brought on board. The initial share price was £125 and today they are £500. Kippsy

An AirBNB style app that connected travellers to the capital with short lets raised £30,000 in 2012, and further investment was made in 2013. However, the company failed to raise more money in 2014 due to failing to gain sufficient revenue traction, and in May 2014 the company folded. You can’t win them all.

EIS Magazine · November 2015

JANUARY 2015 路 www.eismagazine.com

Open Offers Highlighting some of the key tax efficient investment offerings currently available to IFAs Investment Key:

SEIS

EIS

VCT

SITR

IHT

BPR

EIS Open 04/06/2015

Close 24/06/2016

Amount to be Raised: £30m Min Investment: £50,000

T. 020 7493 4940 E. madaleine@calculuscapital.com www.calculuscapital.com

Calculus Capital EIS Fund 16

Calculus Capital, creators of the UK’s first approved AIS Fund and three time winner of EIS Fund Manager of the year, is proud to present its 16th EIS Fund.

Investors can benefit from over 16 years of invaluable investment experience and a strong track record of delivering excellent results to investors. EIS Fund 16 offers investors a portfolio of at least six qualifying companies (the historic average is eight) across a diverse mix of sectors. While the Fund targets capital appreciation, capital preservation is key, this is underpinned by our robust investment process, detailed investment agreements and investment strategy of focussing on established firms with the following characteristics: •The ability to achieve our target IRR of 20% •Experienced management teams •Successful sales of proven products or services •Revenue generating with a strong commercial proposition •Profits or a clear path to profitability •Clear route to exit

The 12-18 month investment programme commences after the relevant closing date. We value our reputation for personal service as much as our investment record, and are focused on providing an excellent client experience.

EIS Open Now

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Min Investment: £10,000

T. 0207 015 2150 E. team@rockpool.uk.com www.oxcp.com

EIS Magazine · November 2015

Rockpool’s EIS Portfolio Service

Rockpool’s EIS Portfolio service offers an alternative to traditional EIS funds. Rockpool creates direct private company investment opportunities for its Network of members which includes hundreds of successful entrepreneurs and professionals from a wide range of business sectors. Deals created for the Network are also open to a wider audience of investors through Rockpool’s EIS Portfolio Service. Rockpool targets companies which are profitable or asset rich. Asset rich sectors include crematorium operation, electricity generation, construction project delivery, managed storage services and children’s nurseries.

Rockpool’s model offers full transparency and control with meet the management sessions, regular updates, investment reviews and an on-line portal. There are two ways to access the service •Self-select service - the investor selects which companies to invest in with a minimum of £10,000 per company. •Managed Service - Rockpool selects the companies to match the investment strategy of the investor. Minimum investment of £10,000 which will be spread across a number of companies.

EIS Open Evergreen

Close Evergreen

Amount to be Raised: No Max Min Investment: £25,000

T. 01865 860760 E. investment@oxcp.com www.oxcp.com

Oxford Capital Infrastructure EIS

Through the Oxford Capital Infrastructure EIS, investors can benefit from EIS tax advantages including 30% income tax relief and tax-free gains, by acquiring shares in one or more EIS-qualifying companies that own and operate infrastructure assets.

Oxford Capital aims to invest in companies capable of generating stable revenues through long-term contracts, producing returns of £1.10-£1.15 per £1invested (net of applicable fees and not including the impact of EIS income tax relief).

Shares are normally purchased for the investor within 4-6 weeks of submission of their subscription. EIS3 certificates are available on average 12 months after purchase of shares. Oxford Capital will aim to sell the shares to a strategic acquirer and return capital to investors after the fourth year of the investment.

EIS Open Evergreen

Close Evergreen

Amount to be Raised: No Max Min Investment: £25,000

T. 01865 860760 E. investment@oxcp.com www.oxcp.com

Oxford Capital Growth EIS

Through the Oxford Capital Growth EIS, investors can build a portfolio of shares in 6-10 small or medium-sized companies over a period of roughly 12 months. Each investment should be eligible for EIS reliefs, including 30% income tax relief and tax-free gains. Investee companies could be operating in a wide range of industries - past investments have spanned sectors from digital marketing to sustainable agriculture - but they will all be businesses that have potential to grow rapidly.

Oxford Capital works closely with the investee companies, helping to accelerate commercial development with the aim of achieving a profitable exit, usually through either a trade sale or a stock market listing. The Oxford Capital Growth EIS targets a return of 2.5x the amount invested (net of applicable fees and including the impact of EIS income tax relief), aiming to return the majority of proceeds 4-6 years after initial investment.

EIS Open 01/01/2013

Close Open-ended

Amount to be Raised: Uncapped

T. 01244 746000 www.deepbridgecapital.com

Deepbridge Technology Growth EIS

The Deepbridge Technology Growth EIS represents an opportunity for investors to participate in a portfolio of actively-managed growth-stage technology companies, taking advantage of the potential tax benefits available under the Enterprise Investment Scheme. A diversified portfolio of actively managed high-growth companies seeking commercialisation funding, the Deepbridge EIS invests in companies that have been a proven technology, clear intellectual property and are disruptive in a high growth/high value market sector.

Focused on investing in high growth companies that are seeking to commercialise and expand, specifically in three sectors: •Energy & resource innovation; •Medical technology; •IT-based technology. The target return for the Deepbridge Technology Growth EIS is 22.9% p.a. over a minimum of three years; representing mid-case capital growth of 160p returned for every 100p invested. To ensure maximum tax efficiency for the investor, the Deepbridge EIS is entirely investor-fee free at point of investment. November 2015 · www.eismagazine.com

Open Offers

Delivering calculated excellence for your clients We offer a range of tax-efficient investments with a proven track record of delivering for our investors and the businesses we support. Our VCT, IHT, EIS and AIM investments suit a variety of tax planning needs which our expert team are happy to support you and your clients with across every step of the process. Call our Business Development Team on 0207 408 4100 or visit pumainvestments.co.uk to find out more.

This advertisement is an exempt financial promotion issued by Puma Investments. It is for the use of professional advisers only and should not to be relied upon by retail clients. Puma Investments is a trading name of Puma Investment Management Limited which is authorised and regulated by the Financial Conduct Authority. Our offerings place your clientsâ&#x20AC;&#x2122; capital at risk and investors may not get back the full amount invested. The tax treatment of our offerings depends on individual circumstances and may be subject to change. Past performance is not a reliable indicator of future results. 28 EIS Magazine Âˇ November 2015

EIS

SEIS

Open Now

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Minimum Subscription: £5m

Kuber Ventures Alternative Investment Platform

Kuber Ventures Alternative Investment Platform allows investors to create a portfolio across different Fund Managers for EIS/SEIS/BPR investments. Through a single application and depending on the scheme selected, investors can create a diversified spread of qualifying investments. Investors may select individual funds or choose to achieve further diversification by investing in one of the Kuber strategies available. Our 8 strategy choices include:

E. info@kuberventures.com www.kuberventures.com

EIS

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Open January 2015

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•Business Property Relief (Minimum Subscription £40,000) •Diversified Growth •Asset Backed •Seed & Early Stage Growth •Mature Growth •Long Term Investment Focused •Media •Seed EIS Strategy

Jenson Funding Partners - SEIS & EIS Fund 3

We are pleased to follow-up our first two funds with a combined SEIS and EIS Fund (‘Fund 3’). Our offering allows investors to choose whether they want to invest solely via SEIS or EIS or to split their funds across SEIS and EIS investments. The Fund aims to target exciting new innovative and disruptive technologies to be nurtured alongside existing investment opportunities that require follow-on investment to fully exploit commercialization of a proven business model. At Jenson we aim to offer these businesses far more than just funding. To date, we have actively advised entrepreneurs to re-evaluate business models, reduced projeced costs introduced potential executives, partners, customers and suppliers as part of the value added service we provide. Further we believe that addition of an experienced finance director to the management team of Investee Companies, even on a part-time basis, will enhance returns.

T. 020 7873 2122 E. seis@jensonsolutions.com www.jensonfundingpartners.com

EIS

SEIS

Open 04/01/16

Close 30/04/16

Amount to be Raised: £15m

T. 0330 223 1430 E. talong@merciafund.co.uk www.merciafund.com

This is why each investment is allocated a Jenson finance director a key differentiation between ourselves and other SEIS and EIS providers. The combined SEIS and EIS structure is designed to provide increased diversification as a portfolio investment. The balance between capital growth, portfolio risk and time horizon is maximised, whilst enhancing the tax advantages available.

Mercia Fund Management

Mercia Growth Fund 5 is a tax efficient technology fund optimised to source, support and scale UK growth enterprise across key sectors in which deep expertise is held. The Fund aims to provide investors with access to a portfolio high growth opportunities in pioneering technology driven businesses combined with a risk managed investment strategy and attractive tax advantages.

At the heart of the Fund strategy lies Mercia’s ‘Complete Capital’ model, designed to provide fledgling technology businesses with a single investment partner solution, in addition to a sector specialist investment team, proprietary deal flow sources including partnerships with 14 universities and a strategic focus on the Midlands, the North and Scotland.

November 2015 · www.eismagazine.com

EIS

SEIS

Open Evergreen

Close Evergreen

Amount to be Raised: No Max Minimum Investments: £5,000

Seed EIS Platform - Crowdfunding for Advisers

Seed EIS Platform is a multi-function platform which works with intermediaries to provide SEIS and EIS eligible single company investments. Founded in 2012 it has completed 40 investment rounds into 30 different businesses. The investment team has considerable experience across early stage venture capital, small cap equity, entrepreneurship and wealth management.

Seed EIS Platform provides a solution for advisers to maintain control of client assets and ensure investment suitability through our controlled deal flow, in contrast to direct to consumer crowdfunding offerings. We also facilitate adviser fees in a simple RDR compliant way. Our portfolio of investment opportunities, across a wide range of sectors and business stages have all undergone various levels of due diligence. T. +44 (0)20 7071 3945 E. enquiries@seedeisplatform.com www.seedeisplatform.com EIS

SEIS

Open Now

Close 29/04/16

Minimum Investment: £5,000 Amount to be Raised: Various

T. 0207 4332 927 E. stephanie.herriger@nlpca.co.uk www.goldfinchentertainment.com

SEIS Open

01/07/2015

31/03/2016

Amount to be Raised: £1.5m

T. 01244 893182 www.deepbridgecapital.com

EIS Magazine · November 2015

Alongside this, we advise businesses on fundraising and HMRC process whilst assisting in structuring investments. This enables advisors to refer clients making private single-company investments, such as those into friends’ or family businesses. Advisors are also able to aggregate all existing tax assets (SEIS, EIS, VCT, IHT) within the platform, centralising ongoing reporting and tracking of fees. Goldfinch Entertainment EIS & SEIS Investments

Goldfinch Entertainment represents the gold standard in entertainment and media investment for individuals looking for EIS, Insurance Backed EIS, SEIS or our SEIS fund opportunities.

As Executive Producers on all projects, we structure each in a bespoke manner, selecting only the most commercially appealing with the best returns following strict due diligence. Our team includes industry leading personnel who have developed an enviable reputation for Goldfinch in the Entertainment and Investment sectors, having been shortlisted in the Growth Investor Awards ‘Industry Game Changer’ category. Our EIS and SEIS vehicles have a minimum target return of 25p/£1 excluding tax relief with many also offering a share of net profits. Our Insurance-Backed EIS product protects 70% of the invested funds, therefore with 30% Income Tax Relief reduces the investor’s risk capital to zero.

Deepbridge Life Sciences SEIS The Deepbridge Life Sciences SEIS is an opportunity to secure potentially attractive returns by investing in a diversified portfolio of early-stage life science companies, whilst taking advantage of the considerable income tax, capital gains tax, and inheritance tax benefits available under the Seed Enterprise Investment Scheme.

The Deepbridge Life Sciences SEIS seeks to fund companies with exciting new technologies that satisfy the needs of large and growing markets. The overarching focus of the Deepbridge Life Sciences SEIS offers investors companies engaged in the development of therapeutics for the following areas: • Anti-viral drug discovery and development • Antibiotic drug discovery and development • Neurodegenerative disease therapeutics • Cancer diagnostics and therapeutics • Autoimmune and other metabolic disorders therapies The target return for the Deepbridge Life Sciences SEIS is >35% over a minimum of five years; representing mid-case capital growth of 250p returned for every 100p invested. To ensure maximum tax efficiency for the investor, the Deepbridge Life Sciences SEIS is entirely investor-fee free at point of investment.

VCT Open

Multiple

26/10/15

29/04/16

Minimum Investment: £5,000

Calculus VCT plc D Share Offer is OPEN for Subscription Calculus Capital are best known in the market for their skills and experience as an investor in established, unquoted SMEs. The awards we regularly win are evidence of that. Our long standing investment team and diligent investment process have led to an exceptionally strong track record of investment success. The key points of the D Share offer are:

• Calculus VCT plc aims to pay an annual dividend of 4.5% of NAV from the first year (6.1% tax free on net cost after 30% tax relief), the company has a successful track record of delivering dividends to investors.

• By co-investing in selected established companies through both VCT and EIS, we are able to choose larger companies and bigger deals – reducing the risk profile of the investment. • Our experienced investment team and thorough investment process have produced impressive dividend performance and exit returns for investors. T. 020 7493 4940 E. madeleine@calculuscapital.com www.calculuscapital.com

VCT Open

Now

15/07/16

Minimum Subscription: £3,000

• Early bird discounts: 1.0% discount for subscriptions received by December 18th 0.5% discount for subscriptions received from December 19th to January 29th 0.5% additional discount for existing Calculus VCT plc investors The full Prospectus is available on our website: www.calculuscapital.com

Amati VCT Top Up Offers 2015/2016 and 2016/2017 Target to raise, in aggregate, up to £7m Amati Global Investors is a well-established manager of AIM-based VCTs. The Offers provide existing and new investors the opportunity to invest in one or both of Amati VCT plc and Amati VCT 2 plc: • Investment into an existing portfolio of more than 60 companies in each VCT, covering both high-growth and maturing businesses. • Tax free dividends, targeted at 5-6% of year-end NAV (although there is no guarantee the targets will be met).

T. 0131 503 9100 E. info@amatiglobal.com www.amatiglobal.com

• AIM based VCTs typically have a more diversified portfolio than other types of VCT, and are likely to be invested in larger, more established companies, with transparent market pricing and reasonable liquidity. • Minimum subscription £30,000 or £2,500 per VCT if applying for both Offers. Should you wish to receive monthly Amati fund factsheets, please request from info@amatiglobal.com

November 2015 · www.eismagazine.com

SITR Open Now

Close Evergreen

Min Investment: £10,000

Rockpool’s SITR Portfolio Service

Social Investment Tax Relief (SITR) is a new HMRC approved tax relief with many similarities to the Enterprise Investment Scheme.

This new relief has one striking difference: lending is permitted under Social Investment Tax Relief rules. This makes it possible to control risk more tightly and achieve greater certainty of liquidity than for a typical EIS investment. Rockpool’s new SITR Portfolio Service will offer shares and loan investments in companies that qualify for Social Investment Tax Relief.

T. 0207 015 2150 E. team@rockpool.uk.com www.oxcp.com

There will be a minimum investment of £10,000.

Rockpool’s model offers full transparency and control with meet the management sessions, regular updates, investment reviews and an on-line portal.

IHT Open

Now

Evergreen

Minimum Investment: £50,000

Amati AIM IHT Portfolio Service on Transact Amati Global Investors offers a discretionary managed AIM portfolio service which advisors can access for their clients on the Transact platform. The Service has recently passed its one year anniversary, having returned 25.5% vs -3.9% FTSE AIM All share Index TR since launch (Period 29 August 2014 - 31 October 2015 Source: Amati Global Investors Ltd) The portfolio is made up of profitable companies which fit into one of four categories: owner-managed; family businesses with well-built brands; established technology managed to a single model, hence all clients will hold the same portfolio of holdings with broadly the same weightings. The management fee is 1% plus VAT on portfolio value, paid quarterly in arrears deducted from the clients’ account.

T. 0131 503 9100 E. info@amatiglobal.com www.amatiglobal.com

•No initial or exit charge •Can be held in an ISA •Shareholdings expected to qualify for 100% IHT relief after 2 years

Should you wish to receive monthly Amati fund factsheets, please request from info@amatiglobal.com

IHT Open

Evergreen

Amount to be Raised: Unlimited

Stellar Asset Management – Stellar Succession Stellar Succession utilises Business Property Relief to provide 100% exemption from IHT after just two years while enabling clients to keep control and ownership of capital. Each client becomes a sole shareholder of their own bespoke private limited trading company, which allocates capital to diversified portfolio of asset backed, Business Property Relief qualifying trading activities including Forestry, Farming, Bridging Finance, Hotels and Renewable Energy.

T. 020 3195 3500 E. info@stellar-am.com www.stellar-am.com

EIS Magazine · November 2015

Key Benefits: • 100% relief from IHT after only two years • Complete control and full access to capital • Diversified and non-correlated • Asset backed

• Focus on capital preservation • Access to growth or income trades • Uncapped target return of 5% pa (net)

We offer a unique, but optional insurance policy across our range of IHT products to protect investors from any future loss of value. The policy provides investors and advisers with peace of mind and ensures beneficiaries always receive the original amount invested as a minimum.

IHT Open

Evergreen

Amount to be Raised: Unlimited

Stellar Asset Management – Stellar AIM IHT Portfolios Stellar AIM IHT Portfolios provides investors a discretionary managed, diversified portfolio of AIM listed companies with the option of a unique insurance policy to protect investors from any future loss of value. Key Benefits: • 100% relief from IHT after only two years • Complete control and full access to capital

• Potential for growth • Easy access & liquidity

This service is suitable for those who wish to transfer existing stocks and shares or have cash holdings to invest into a portfolio of AIM listed shares which qualify for Business Relief. T. 020 3195 3500 E. info@stellar-am.com www.stellar-am.com

IHT Open

Evergreen

Amount to be Raised: Unlimited

The investment strategy exercises a well-diversified, disciplined stock selection policy which focuses on long-term capital growth and risk mitigation. We offer a unique, but optional insurance policy across our range of IHT products to protect investors from any future loss of value. The policy provides investors and advisers with peace of mind & ensures beneficiaries always receive the original amount invested.

Stellar Asset Management – Stellar AIM IHT ISA Stellar AIM IHT ISA provides clients with a diversified portfolio of AIM listed companies in a tax free ISA wrapper with the option of a unique insurance policy to protect investors from any future loss of value. Our AIM ISA is one of the most taxefficient investment opportunities available on the market. Key Benefits: • 100% relief from IHT after only two years • Complete control and full access to capital • Easy access & liquidity

• Income Tax free • Capital Gains Tax free • Potential for growth

This service is suitable for both those who wish to make their new ISA savings and current ISA holdings IHT efficient. T. 020 3195 3500 E. info@stellar-am.com www.stellar-am.com

BPR Open

Now

Evergreen

Minimum Subscription: £50,000

Oxford Capital Estate Planning Service The Oxford Capital Estate Planning Service is an investment which, if held for at least two years and still held at death, can be used to shelter part of an individual’s estate from Inheritance Tax. The Estate Planning Service provides a range of investment options, targeting differing levels of capital growth and dividend income. Should their circumstances change, investors can request access to part or all of their capital, by asking Oxford Capital to sell their underlying shares. Investors in the Estate Planning Service will acquire shares in unquoted trading companies. Managed by Oxford Capital’s infrastructure investment team, these trading companies will make equity investments in, and loans to, companies which in turn will own and operate revenue-generating infrastructure assets, such as renewable energy installations.

T. 01865 860760 E. investment@oxcp.com www.oxcp.com

The investor’s shares should qualify as ‘Business Property’, and therefore be eligable for 100% relief from Inheritance Tax through Business Property Relief, if held for the requisite period.

November 2015 · www.eismagazine.com

BPR Open

April 2013

N/A

Minimum to be Raised: Unlimited

TIME Investments TIME:Advance TIME:Advance is aimed at individuals looking to reduce their Inheritance Tax (IHT) liabilities and offers 100% IHT relief in just two years, alongside a targeted return of 3.5% per annum. Importantly clients retain access and control, so have the option to withdraw a lump sum or set up regular withdrawals in the form of an income.

TIME:Advance focuses on capital preservation by investing in asset backed businesses, with no debt which qualify for Business Property Relief (BPR). The product is managed by an expert team, with a proven 20 year track record of success in achieving BPR for investors.

T. 020 7391 4747 E. questions@time-investments.com www.time-investments.com

BPR Open

October 1996

N/A

Minimum to be Raised: Unlimited

TIME Investments TIME:Corporate Trading Companies TIME:Corporate Trading Companies (TIME:CTC) is our bespoke Inheritance Tax (IHT) solution for corporate investors, which boasts an impressive 20 year track record of delivering IHT relief for investors. TIME:CTC is aimed at business owners who have built up surplus cash in their business and could potentially lose Business Property Relief. TIME:CTC focuses on capital preservation by investing in asset backed in businesses which qualify for Business Property Relief (BPR). It targets an attractive 3.5% return and to date more than 500 of our clients have already achieved BPR on their investments.

T. 020 7391 4747 E. questions@time-investments.com www.time-investments.com

BPR Open

12/10/15

N/A

Minimum Investment: £25,000

Mariana Estate Planning Solution Mariana are an investment company with multiple business lines. We have a prominent institutional side to our business; including tax advisory, inter-bank broking, market strategy and asset management departments. We are one of the UK’s leading providers of structured investments and we offer a range of tax efficient investments. We are one of the only providers of tax efficient investments in the UK with an inhouse tax advisory function. This allows us to provide an extra level of service to the advisers we work with and helps us ensure our investments qualify under relevant legislation.

T. 0207 065 6699 E. enquiries@marianainvestments.com www.marianainvestments.com

EIS Magazine · JANUARY 2014

The Mariana Estate Planning Solution is a discretionary managed service, managed by Enterprise Investment Partners LLP, who are advised by Mariana. The service seeks to provide inheritance tax shelter after two years, by investing in one or more BPR qualifying, unquoted trading companies. The trading activity of these companies are strictly focused on capital preservation and achieving a predictable rate of return (4% per annum, net of fees). The primary trading strategy will be renewable energy; namely anaerobic digestion. We have partnered with a FTSE 100 UK food processing company, who are providing healthy deal-flow operational support and contractual

The Multi-Manager EIS Platform Kuber Ventures offer investors access to some of the most innovative EIS investment opportunities around, managed by leading Fund Managers and all within a single platform. Investors who qualify for EIS can benefit from: • • • •

30% upfront income tax relief on amount subscribed (up to a maximum investment of £1 million for the 2014/2015 tax year and/or £1 million carried back to 2013/14 tax year); 100% inheritance tax relief after two years (provided the investment is held at the time of death); Capital Gains Tax deferral for the life of the investment on amount subscribed; 100% tax free growth (provided income tax relief has been given and not withdrawn and disposal takes place more than three years after the investment begins to trade);

Investors can choose from a range of EIS funds, creating a single portfolio which is diversified across a number of Fund Managers and underlying portfolio companies, offering targeted spread of between 15-40 companies in a typical portfolio. For more information about Kuber Ventures and its range of EIS Portfolio Funds, please visit www.kuberventures.com

10 Old Burlington Street, London, W1S 3AG T: +44 (0)20 7478 8540 E: info@kuber.uk.com

Kuber Ventures Ltd [FRN 574987] is an Appointed Representative of Sturgeon Ventures LLP which are Authorised and Regulated by the Financial Services Authority. Kuber Ventures Ltd, 10 Old Burlington Street, London W1S 3AG, registered number: 8693809, VAT: 175 9290 69 Telephone: +44 (0) 20 7478 8540; Fax: +44 (0) 20 7009 6601. www.kuberventures.co.uk

TIME to look again

Innovative solutions, defensive investments TIME provides tax efficient investment solutions and we’re proud to say we’re rather good at it with more than £500 million of assets under management and a 20 year track record of success. What stands us apart in our market is our focus on seeking consistent stable returns for our investors, which we deliver through a defensive investment strategy.

Our distribution team of 19 provides national coverage to help advisers provide solutions tailored to their clients’ needs

We offer the longest track record of all BPR providers (20 years and counting)

We focus on capital preservation throughout our investment solutions

What do we look for when investing? Predictability

We’re dedicated to the adviser market; we don’t accept direct client investments

We pride ourselves on providing genuine transparency about where and what we invest in

Asset backing Income generation

Find out more 020 7391 4747 questions@time-investments.com time-investments.com

FULL PAGE ADVERT

This notice is aimed at financial advisers only and is not intended for retail clients. TIME Investments is a trading name of Alpha Real Property Investment Advisers LLP and is authorised and regulated by the Financial Conduct Authority.

We have an in house team of 12 investment specialists, offering a real depth of experience