Download - EIS Magazine - February 2016

SEIS EIS VCT SITR IHT BPR

The IFA Guide To Tax Efficient Investing

TAKE A NEW LOOK AT 2016

FEBRUARY 2016 ISSUE 06

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C R E A T I N G S O L U T I O N S

angloscientific

Anglo Scientific EIS This is Innvotec’s “flagship” Fund. This eighth annual EIS Fund from the Innvotec / Anglo Scientific collaboration is, by demand, now an “evergreen” fund that offers private investors all year round investment into fast emerging companies created and led by the well regarded, specialist and dedicated team of technology entrepreneurs, that is Anglo Scientific.

Anglo Scientific has built a portfolio, all EIS qualifying, of hugely promising companies, focused on delivering world class products based on the very best science, all of which should make a difference to peoples lives; investors have the opportunity to invest in a pre-identified portfolio of five or six of these companies, details of which are to be found in the Information Memorandum.

Performance across the earlier funds is impressive and is likely to remain so as the target companies are on a strong upward growth curve in both performance and value.

Startup Funding Club SEIS 2016 The third annual generalist SEIS Fund from the Innvotec / Startup Funding Club collaboration, the first two having been deployed across well-diversified portfolios, with forty companies having been invested in.

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 know-how to meet the challenges that lie ahead.

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 and a co-investment policy that sees the Fund investing alongside business angels.

Odyssey Mission SEISUK based private investors have an opportunity to invest in the Odyssey Mission SEIS Fund, a novel portfolio of early stage businesses led by Asian Entrepreneurs. Investors have the prospect of strong capital appreciation whilst helping an “affinity group” renowned for both ability and commitment.

The Fund is focused on providing start-up /early stage funding and mentoring support to the best of the next generation of Asian graduate entrepreneurs 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 SEIS Fund is the first step in the Innvotec / Startup Funding Club inspired Odyssey Mission project to encourage cross fertilization of entrepreneurism between the UK and the Indian sub-continent.

OION SEIS 2016The OION SEIS Fund is the second Innvotec managed growth fund in association with Oxford Innovation Opportunities Network (OION). The Fund offers private investors an opportunity to invest in a growth portfolio of early stage businesses identified by OION through its UK wide affiliated network of business and innovation centres and its associated business angel networks.

The companies that will form the OION SEIS Fund will be from across the UK and will use the proceeds of investment to advance them on their business growth curve. The Fund benefits from the participation of Oxford Investment Opportunities Network (OION) in generating quality deal flow and as with all Innvotec managed SEIS Funds the entrepreneurs will be supported by the provision of experienced mentors.

FinTech SEIS 2016Another fund from the Innvotec/ Startup Funding Club association, with FinTech Circle as the provider of sector expertise, and the first dedicated to investment in aspiring UK companies operating in the financial technology sector.

The global financial services industry is currently experiencing a wave of innovation which is starting to shake up decades of status quo. A large number of “newcomers” are developing products and services that are disrupting traditional activities such as foreign exchange, payments, asset management, insurance and even developing new forms of currencies.

Companies within the FinTech SEIS Fund will benefit from the complimentary knowledge and expertise of the parties involved.

A DIVERSITY OF GROWTH EIS / SEIS FUNDS – BROUGHT TO YOU BY INNVOTEC AND ITS STRATEGIC PARTNERS

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: [email protected] 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: 2030086Innvotec Limited is Authorised and regulated by the Financial Conduct Authority.

VA0815

“And other funds to follow”

EIS Magazine is published by IFA Magazine Publications Limited, The Tobacco Factory, Loft 3, Bristol BS3 1TFFull subscription details and eligibility criteriaare available at www.eismagazine.com©2016. All rights reserved.

Telephone: +44 (0)117 9532 003

Editor: Michael Wilson, Editor-In-Chief [email protected]

City Editor: Neil Martin [email protected]

Commissioning Editor: Michelle McGagh

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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.

CONTENTS

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

Editor’s Welcome Michael Wilson, Editor in Chief, says the April cut in the pensions cap offers an enticing opportunity for advisers

4.

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

6.

What Should Advisers Look For When Selecting Their EIS Provider?Ian Battersby, Business Development Director at Seneca Partners

8.

Take an Alternative View on 2016Annabel Brodie-Smith, says Alternative Investments Provide an Opportunity

14.

A New VentureTom Bradley, Partner at Oxford Capitaland Head of the group’s Growth Investment Team

16.

Top AIM Stock Tips for 2016With Investment and Tax Opportunities, AIM Stocks Offer the Best of Both Worlds

11.

Taking AIM at Inheritance TaxFamilies Are Being Hit by Inheritance Tax But Advisers Have New Tools to Help

20.

Open OffersOur monthly listing of what’s currently available for subscription.

23.

3February 2016 · www.eismagazine.com

Time is of the EssenceWelcome

The next time we meet on these pages, the door will be slowly closing on a chapter of investing history that too few clients are aware has ever existed. Let alone that this is their very last chance to stash away a timely deposit for their future wellbeing.

I’m talking, of course, about the imminent reduction in the pension lifetime allowance, which comes down to just £1 million on 6th April – from £1.5 million in 2013/14 and a painfully-remembered £1.8 million in 2011. Yes, the Sunday papers are doing their best to spread the word about this closing pair of jaws, but too many people are still kidding themselves that there’s no way their pension pots will ever hit seven figures.

They are, of course, wrong. Inflation and investment returns being what they are, there’s every likelihood that somebody in their early forties with £150,000 in the pot will bust the £1 million threshold effortlessly by the time they reach 68, or 70, or 75. Because, remember, the threshold applies not just to the value of contributions but to the value of the funds. For those clients with defined benefit company schemes, the task of ascertaining just how big the underlying pot might be is quite literally impossible to quantify.

The challenge for advisers, then, is to make the dilemma clear. And to ensure, of course, that clients are properly advised about the

tax-efficient alternatives which EIS Magazine is here to discuss. The growing interest in EIS, VCT and BPR schemes is due in no small part to a slow-growing awareness of the issue.

Different Forms of ResponseFor those clients whose pots are

already worth between £1 million and £1.25 million, the existing year’s entitlement can still be secured by locking into “fixed protection” within the next 15 months using form IP2014; and for some, an early withdrawal of invested pension funds can count toward a beneficial reduction of the pension pot.

For the latter – as indeed, for younger clients who may be floating blissfully downstream toward the awaiting pensions waterfall – the pro-active investment alternative we’re proposing in these pages will prove a better way of heading off the inevitable. The increased level of EIS and SEIS schemes we’re now seeing is likely to be just a precursor to a much wider flood of new opportunities in the next few years.

A pity, then, that the limitations on VCT eligibility which we discussed in our December issue are likely to dampen the level of issuance in the

coming months – meaning, incidentally, that the prospect of funds being fully subscribed ahead of schedule is more pronounced than usual! But in the long term, the message is still strong.

Smaller companies are outpacing their leviathan rivals, even in a financial market which has seen its share of uncertainty over the last twelve months. All of this month’s sponsors and feature writers have confirmed that the market’s appetite for alternative investments is at a high level. And that’s the way we think it’s going to stay.

SincerelyMichael Wilson, Editor in Chief

4 EIS Magazine · February 2016

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NOTE: This document is issued by Prestige Asset Distribution Limited, as financial promotion for information purposes only. It should be ignored by any UK recipients who are not either (i) authorised under the Financial Services & Markets Act 2000 (“FSMA”) or (ii) are investment professionals (within article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (as amended) (‘‘FPO’’), certified sophisticated investors (within article 50(1) of the FPO), persons of a kind described in article 49(2) of the FPO or certified high net worth individuals (within article 48(2) of the FPO). If you are in any doubt you should consult an independent financial advisor, who should be authorised under the Financial Services & Markets Act 2000 if you are in the UK. This financial promotion has been approved for the purposes of s21 FSMA by Prestige Asset Management Limited which is authorised and regulated in the UK by the Financial Conduct Authority (FCA). Your capital may be at risk and you may not get back the full amount invested. Tax treatment depends on the individual circumstances of each investor and may be subject to change. Past performance is not a reliable indicator of future results and any forecast is not a reliable indicator of future performance. The availability of tax reliefs also depends on the investee companies maintaining their qualifying status. The Prime IHT Portfolio invests into small unquoted companies which are not quoted on any stock exchange and which are likely to have higher volatility and liquidity risk than shares quoted on the London Stock Exchange Official List. First Equity Limited, Prestige Asset Distribution Limited, Prestige Asset Management Limited and Jarvis Investment Management Limited do not provide financial or tax advice on the Prime IHT Service and as this product is not suitable for everyone, investors should seek independent investment and tax advice from suitably qualified advisor(s) before making an application to invest in this product. Please note that all the information and figures in this document are correct as at 09/2015, unless otherwise noted. © 2016

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IntroducIng PrIme InherItance

tax ServIce

helping small businesses reduce their costs and increase their efficiency through the financing of modern equipment, machinery and vehicles as well as providing capital for renewable energy and waste to energy related projects.

NewsRound up of the latest industry news

A new AIM inheritance tax portfolio service has been launched.

The Unicorn AIM Inheritance Tax Portfolio Service comes out of a partnership between Unicorn Asset Management (Unicorn) and WM Capital Management Limited (“WM”).

The plan is to provide IHT exemption to investors, after an initial two year holding period, by investing in a diversified portfolio of 25 to 40 AIM stocks that qualify for Business Property Relief (“BPR”) and which qualify as ISA investments.

Day-to-day management of the service is down to WM, which acts as the Discretionary Fund Manager. Unicorn fulfils the role of investment adviser to the service.

Unicorn Asset Management Director Chris Hutchinson said: “Unicorn specialise in AIM and small cap investing. We manage the largest AIM-focused VCT in the market and over a quarter of our AUM is invested in the AIM space. Conducting much of our research in house delivers important synergies with AIM investment, where there are opportunities for under-brokered and under-researched companies. We want to maximise these opportunities within the Unicorn AIM IHT Portfolio Service, to provide investors with effective and efficient mitigation of their IHT liabilities without the time lag or complexities of some of the more traditional solutions.”

According to the service, the key benefits are: Unicorn’s AIM Expertise – Unicorn specialise in AIM and

UK small cap investments, currently managing over £250m in AIM stocks, including their market-leading AIM focused VCT;

ISA Qualifying – the twin benefits of tax-free capital growth and income, with IHT exemption after two years;

Income Portfolio Option – dividends paid quarterly;Simplicity – no need for complex legal structures or

medical underwriting;Speed – once investors have held shares qualifying for

BPR for a minimum of two years their value will be exempt from IHT. More traditional forms of IHT planning (such as gifts or trusts) can take up to seven years to reach full exemption;

Control – should an investor’s personal or tax circumstances change (for example to pay for care fees) they have access to their investment at all times, unlike trust planning or gifts.

UK-based investment platform VentureFounders is still taking investments in idio, a content intelligence platform.

idio, which allows companies to tailor their online content to the individual reader, is hoping to raise £1.5 million in an EIS eligible fundraise.

To date, £665,514 has been invested from 11 investors. Some 16% of the equity is on offer.

Existing shareholders are supporting the fundraise, including Notion Capital.

idio co-founders Andrew Davies and Edward Barrow are technology entrepreneurs with a track record of several successful exits. The company says it has established a solid customer base across several different countries and sectors, particularly the financial services market. Clients include JP Morgan, Direct Line Group, TD Canada Trust and IG Group.

Co-founder and managing director of VentureFounders James Codling said: “idio is run by two highly entrepreneurial and ambitious individuals, who are aiming to revolutionise the way companies manage their online content to drive customer engagement. We are impressed by idio’s performance to date and its client portfolio including some of the global financial institutions.”

Co-founder of idio Andrew Davies said: “We have found a unique way of helping large enterprises deliver effective customer experiences, and this round of fundraising will be critical to drive our growth in the UK and US. We chose VentureFounders to support part of this fundraise because the team really understand the kind of fundraise we are doing, understand our value proposition for financial services businesses and have experience in working with VC backed companies.”

New AIM Inheritance Tax Portfolio Service Launched

VentureFounders Taking Investments In idio


Specialist precision engineering EIS investment adviser Cyrus Investment Management has announced the turn-around of UK aerospace engineer FGP Systems.

Funds raised through the Cyrus Secured Loans Precision Engineering EIS Fund 1 were used to acquire FGP in September out of administration. Following investment and a re-structuring by CIM, FGP is once again in profit with a total of 105 specialist engineering jobs saved.

FGP is a top five UK aerospace precision engineering company, originally created in 1970. As a Tier 1 ‘build to print’ company, it designs, engineers and manufactures bespoke mission critical components for the leading UK, European and US civil and military aerospace industries.

Products include actuators and auxiliary power units for commercial aircraft, to ejector seats for fighter jets and business class seating for Boeing and Airbus. FGP not only designs and engineers components, but makes use of some of the most advanced techniques available, including 3D metal and plastic printing.

Chief Investment Officer of CIM Ian Watkins said: “We are delighted to have acquired this world class Precision Engineering company, retaining the entirety of FGP’s customer base, 100% of its state of the art machinery as well as 100% of its apprentices and core engineering staff.”

Managing Partner of CIM Peter Schwabach said: “FGP is the third investment CIM has made in Tier one UK precision engineering companies in line with our strategy of building value in this world class industry. By injecting new capital, management and products we aim to increase profitability within each investee company in the portfolio and exit the aggregated businesses to a single trade or institutional buyer after three year obligatory holding period.”

Cyrus IM believes that precision engineering has long been a dedicated asset class for private equity, offering investors predictable income and capital growth. It says that is the only dedicated EIS fund manager that offers individuals the ability to invest exclusively in the precision engineering asset class.

Close Brothers Asset Finance advised on the turn-around.Managing Director of Close Brothers Asset Finance

Roger Aust said: “We are delighted to offer our services in completing the re-financing of equipment and in facilitating the Regional Growth Fund grant. We’re very proud to have supported a British engineering company with such long heritage in the vitally important aerospace sector. A pragmatic approach combined with a very sound management strategy has given the company an excellent chance of a sound future, safeguarding and creating many highly skilled jobs that are so vital for the on-going health of the local economy.”

Puma Investments has completed a number of new care home deals.

It’s Puma VCT and EIS portfolio companies have entered into transactions, totalling £13.7 million, to construct a number of healthcare assets across the UK.

Puma says that three of the latest transactions involve Dunkeld Trading Limited, its Puma EIS Portfolio Service company. This is providing project management services in connection with the development of an 88 bed care home in Melton Mowbray, Leicestershire; a supported living accommodation development in Bolton, Lancashire; and a new purpose-built 80 bed care home in Dover, Kent. It is also involved in Kingsmead House, a £3.8 million loan to finance the post development stabilisation period for a 40 bed nursing and dementia care home in Mytchett, Surrey.

These latest deals follow a £6.8 million transaction in Hamilton, Scotland, and a £5.8 million transaction in Mill Hill, London. This takes the total value of healthcare transactions in 2016 to over £26 million.

Investment Director at Puma Investments Eliot Kaye said: “We have been involved with a number of transactions in the care home space. A core part of our investment strategy is focused on sourcing asset-backed investments such as these, in order to mitigate risk, while at the same time we are confident that these deals can offer an attractive return for our investors.

“Small and medium-sized businesses are still finding it difficult to access the funding they need; as a consequence, we are seeing many established companies coming to us for funding. We have a high quality pipeline of potential investments and can be flexible about where we invest, which is reflected in the variety of deals, both in terms of geography and business sector.”

Turnaround of UK Aerospace Precision Engineer

New Care Home Deals for Puma


What Should Advisers Look For When Selecting Their EIS Provider?Ian Battersby, Business Development Director at Seneca Partners, Discusses HMRC casting a close eye on tax-mitigation schemes and how advisers need to look carefully at EIS providers

Last year was a year of change in the EIS market with HM Revenue & Customs (HMRC) sharpening its focus in terms of how reliefs are used in tax advantaged venture capital schemes.

There has been concern about the potential for schemes to be used as a tax mitigation tool. Primarily, the removal of ‘renewables’ and other subsidised investments, where the investment risk had been substantially removed prior to investment, has significantly changed the landscape. This has created a retrenchment for advisers in terms of reassessing whether their clients have the appetite and capacity for the investment risk, which is likely to be a more inherent feature of the majority of EIS offerings in the market going forward.

If growth capital offerings are very much more the theme that HMRC is seeking to cultivate in fulfilling its ambitions for well-targeted tax reliefs, then the demands placed on advisers when selecting their ‘provider panels’ becomes rather more challenging.

Where To Start?Most advisers will be familiar with

the established reviews provided by the Tax Shelter Report (Allenbridge)

and Tax Efficient Review (Martin Churchill), which have long been an excellent source of ‘first base’ analysis for advisers in the initial sift. More recently, the advent of MICAP has been helpful too, by incorporating a level of analytics which advisers are able to use. Equally, there is an excellent publication that Intelligent Partnership have provided for advisers, although this is market overview-oriented rather than a product provider insight.

A number of advisers also have their own due diligence questionnaires (DDQs), which product providers are asked to complete and are a further step down the road of being able to articulate to the regulator why a particular provider has been selected over another, with client appropriateness very much in mind.

Understanding The OfferThis may seem like an obvious

point to make but surely the ability to articulate to clients exactly what type of investments their client is investing in is a prerequisite for advisers?

Growth capital alone can be generalist or sector specific e.g. technology, biotech, media. Is the product a single company investment, a fund or a portfolio service that offers

diversification across a range?It is also relevant to consider how

realistic the target returns genuinely are, how the exit is predicated and the likelihood of that happening within a sensible timeframe.

Fees and charges also come under close scrutiny as part of this assessment with a wide variety of different structures featuring in the EIS product universe. Crucially, advisers will want to know that there is clear transparency at outset and that charging structures are aligned with client returns.

Deferring annual management charges until investors have had a minimum level of return is increasingly popular, as are offers which reward product managers only for good investment outcomes. Advisers appear increasingly resistant to solutions where fees are levied for little more than return of the tax relief, which also seems consistent with HMRC’s stance on investment risk.

How Well Qualified Is The Manager?

In the context of recent changes, the track record of managers has become more of a debate. With seemingly far


more investor cash heading towards growth capital type offerings than ever before, measuring results for managers who hitherto have been more energy focused for example, is probably far less relevant than their skills and abilities to operate in a completely different area of the market.

The strength and pedigree of the investment team in the sector in which they are operating is arguably the most important judgement call of all for advisers. When the sales veneer is taken away, ultimately these are the people who are charged with deploying clients’ capital wisely. Therefore, analysis of their investment credentials, in growth capital in particular, ought to be a foremost consideration in the selection criteria. The skills and experience requirements of a growth capital specialist are substantially different from those required in operating a solar facility, for example.

The Investment ProcessAdopting the theme of investment

team capability, it follows that the investment process of due diligence, selection and entry point valuation has to be robust. There is growing concern that in the run up to 5 April, deals will

be concluded in order to ‘get money out of the door’.

Whilst this may appeal in the short term in order to carry back to a previous tax year, the consequence of overpaying for deals is not likely to reveal itself until the exit point comes into view, some years hence. Trying to right side an overvalued investment in a three or four year time scale is almost impossible to achieve and it is

doubtful any investor would want an early tax certificate, rather than a good investment outcome.

Entry point valuation is therefore another critical component which reverts back directly to the quality and experience of the manager and the underlying investment team.

It goes without saying too, that consistent deal flow of the requisite quality is an aspect over which advisers need to be satisfied. The notion of product providers hoovering up huge swathes of investors’ capital without visible means of deploying it wisely simply exacerbates the prospect of having to overpay for deals.

Returns and Exit TimeframeReturns targets have a habit of

becoming reasonably ‘fixed’ in the eyes of many investors when the reality is anything but! Managing client expectations is often a challenge for advisers. Understanding the rationale behind the published targets and the likelihood of future achievement is fundamental. Certainly in a growth capital sense, it is unlikely to be an exact science and matching those targets with timeframes for realisation will play a significant role in managing expectations.

To add to the puzzle advisers are seeking to solve at this point, there are relatively few genuine growth capital providers who can demonstrate an exit track record over any sustained period of time. Again, all roads lead back to the quality of the manager in this regard and the better managers will

The strength and pedigree of the investment team in the sector in which they are operating is arguably the most important judgement call of all for advisers


have a decent vision on how this will be achieved having been a key part of their due diligence, pre-investment.

Managers who can take the lead throughout the investment journey from origination through to exit are likely to score highly with advisers, as will those who can progress a good proportion of their investee companies to AIM, thereby creating a technical liquidity and exit event.

Advisers who have to date been prominent in the ‘renewables’ space will probably need to rationalise the returns expected from a growth capital based investment in context of the yields they may have become accustomed to, not least because the investment risk profiles between the two are wholly different.

The Post Investment ScenarioGrowth capital investments by

their very nature are dynamic and ought to be a journey undertaken by management within the investee company in concert with the funder, which in this case is the EIS provider. Close control and tracking to ensure plans are being adhered to and remedial action taken when necessary are all part of protecting the investment.

The ability of the manager to oversee and influence this journey is where managers potentially earn their fees and the degree to which this happens will largely be a function

not only of the manager’s capabilities, but also the conditions which have been written into the terms of the investment up front. A growth capital based investment in which the manager is ‘passive’ would not be an encouraging sign for advisers who should rightfully expect managers to be hands on. After all, isn’t that where any AMCs charged by the managers become justifiable?

Thereafter, regular reporting should assist the adviser in keeping his client informed of progress. It is worth pointing out that in the ordinary course of events with many other investment products, advisers

will have at least annual valuations to support the updated information flow. It is unlikely that EIS growth capital investments will operate under the same rigid code and unless supported by an AIM valuation, they are more than likely to see their EIS investments still held ‘’at cost’’. With no real benchmark for valuation of a company which is privately held, this is entirely normal and in all probability, any which have been internally valued may need to be viewed with a degree of caution.

Looking Further AheadIn the wake of recent changes and

also limitations around tax relief on pension contributions, EIS is assuming greater importance in the thinking of many advisers. Apart from the initial tax reliefs available, perhaps the availability of CGT free returns after the minimum holding period should be the real driver. That in itself suggests that utilisation of EIS ought to be an investment-led consideration rather than a tax led decision – a concept which also seems consistent with how HMRC expects their reliefs to be targeted.

If the likely progression is to see advisers viewing EIS as a non-correlated, private equity component within clients’ wider portfolios, then this may also provoke more consistent, all year round EIS investing where conceivably there will be better value, as opposed to the dash for the line at tax year end. Some have already recognised that investing in April, May and June, which is probably the polar opposite of historic practices, is likely to yield tax certificates in readiness for 31 January tax returns.

Undoubtedly the EIS market place has many faces, which increases the size of the task in selecting manager panels. However, well researched advisers will undoubtedly recognise that EIS can be a very compelling and rewarding asset class when used appropriately.

Utilisation of EIS ought to be an investment-led consideration rather than a tax led decision


Top AIM Stock Tips for 2016Chris Hutchinson, Director of Unicorn Asset Management:With investment and tax opportunities, AIM stocks offer the best of both worlds

Whenever there are big changes to the way the government treats the taxation of investments, there are also inevitably new threats and opportunities to consider. Such is the case with recent changes to the rules surrounding ISAs and inheritance tax (IHT).

We are wary of trying to interpret new rules especially in what, politely, might be termed an innovative sense. Instead, we like to think that we are good at adapting to any given new rules, while ensuring that our core model still works and making sure we

continue to operate firmly within the overall framework of rules.

In the case of holding IHT exempt investments within an ISA portfolio, we saw that the new rules introduced in August 2013 had the potential to be transformational. Unicorn is a naturally conservative investment house – we haven’t launched a new fund for almost ten years – but we thought these changes offered a great opportunity.

We run the AIM IHT Portfolio Service and when it comes to AIM, we look for established, profitable companies with

strong business models, which are cash generative and ideally dividend-paying. Crucially when it comes to the IHT service, many of these companies qualify for inclusion under Business Property Relief (BPR) rules.

The recent changes to ISA rules mean that we can now construct a portfolio of BPR-qualifying companies whereby investors get an estate-planning solution, combined with all the tax-free ISA investment benefits. By switching a proportion of the value of an existing ISA fund into an AIM portfolio, investors should be able to


avoid paying any IHT on those funds. Whereas more traditional forms of IHT planning such as gifts or trusts can take up to seven years to be fully exempt from IHT, these BPR-qualifying AIM stocks need only be held for two years before IHT exemption applies.

There is, however, a growing issue surrounding the popularity of many BPR-qualifying AIM listed companies.

The AIM IHT market is well established and other fund and wealth management businesses have developed substantial AIM IHT portfolios and the growth in these services means there is definitely a weight of money chasing a finite pool of suitable, qualifying investments. We estimate that, as it stands, there are around 730 BPR-qualifying stocks on AIM, of which around 150-200 meet our basic investment criteria. There is therefore a risk that individual valuations become inflated, thus creating the potential for a sharp ‘share price’ correction, should an extreme valuation bubble develop. However, the businesses I am interested in are not of the fly-by-night variety.

Here’s a selection of stocks that I think are good investments:• JAMES HALSTEAD is a Manchester-based manufacturer of many of the world’s most notable brands in commercial, contract and consumer flooring. The business has been trading successfully for over 100 years and it has grown to have a market value today of £1 billion. The Halstead’s are still firmly in charge, with Mark Halstead, the current CEO, being the fourth generation of the family to have led the business. Importantly, the Halstead family retain a significant equity stake in the business. Through a continued and relentless focus on profit growth and cash generation, management have always been able to maintain a robust balance sheet, enabling the business to build up a track record of growing dividends year in, year out, for the last 40 consecutive years - a remarkable achievement by any measure.

• ABCAM is a manufacturer of therapeutic antibodies and protein research tools that was launched in 1998 in Cambridge and floated on AIM in 2005. Founder Jonathan Milner stepped down as chief executive last year, but is still on the board as deputy chairman and retains a 13% stake in the firm. We invested £1.5 million at the time Abcam floated on AIM in November 2005, when the market cap of the business was around £50 million – 10 years later and Abcam today is worth over £1 billion.

I have also identified over 100 other companies that would be eligible for inclusion in our IHT portfolios depending on valuation. This allows us the flexibility to mix and match

individual portfolios, depending on where best value lies at the time client applications are received.

These businesses will form the core of both our income and our growth AIM IHT portfolio options, since they offer exposure to entrepreneurial, small and medium sized businesses that are capable of consistent growth, during what we expect to be a relatively benign period for the UK economy. Admittedly, some of these stocks might be viewed as being expensive on a historic price/earnings multiple, but to me, the piece of the jigsaw puzzle that many people seem to be missing is that these businesses are only now experiencing a return to modest growth in sales.

From the moment the financial crash hit in 2008, many of these companies had no option other than to hunker down and weather the storm. The smart management teams focused on cash generation, cost cutting and debt reduction. In some cases, this was simply a matter of survival, but for most it was the sensible thing to do in an uncertain world. As a result very few of these businesses went to the wall during the depths of the recession. Instead, they became operationally efficient and also very lean from a cost perspective.

With demand for their products and services now slowly returning, revenues have begun to grow. Typically a 5% to 10% increase in sales will have a profound and disproportionately positive impact on profitability for well managed businesses such as these. The benefits are only now starting to flow through into earnings growth. It is my contention that this phase of earnings recovery has only recently begun and should be sustainable for several years to come; notwithstanding nasty, external shocks to the UK economy. It is this positive outlook, which we believe hasn’t necessarily been fully factored into broker forecasts. We believe that earnings growth will continue to support valuations and we think prospects remain bright for the foreseeable future.

Of course, investors are right to remain somewhat wary of the AIM market as a whole. However, we passionately believe in AIM as an ideal home for young, vibrant and dynamic British businesses and we harness this passion to a clinical and highly selective approach to portfolio construction.

By switching a proportion of the value of an existing ISA fund into an AIM portfolio, investors should be able to avoid paying any IHT on those funds


The Best of Both Tax-Efficient Worlds

We are confident that the AIM IHT ISA message is hitting home. According to official statistics, around six million of the UK’s total 23 million ISA investors are now over the age of 65. As well as having to think about their pension provision for the coming years, an ever increasing number are also now starting to search for estate planning solutions within a tax efficient framework.

From talking to advisers, we know that many have clients who, in the past, may well have been successful

entrepreneurs themselves, are now realising that they have limited options when it comes to both their pensions and their potential IHT liabilities. Of course, they could keep whatever value they have built up in their ISA portfolios and continue to enjoy tax-free income and growth, while simultaneously accepting that they may well trigger a meaningful IHT liability when they die. Or, they can consider transferring their money out of their ISA into an IHT planning vehicle, which over time will do the job of reducing their IHT liabilities, but this means they lose all the tax-free income and growth benefits they enjoyed through their ISA.

While there are tax benefits as far as we are concerned, everything should, first and foremost, revolve around investment performance.

We believe we will continue to see even more quality companies that are keen to secure an AIM listing. After all, the UK has always been a nation of innovators, entrepreneurs and successful small business owners. There are plenty of cracking privately-owned businesses out there, run by fantastic management teams; some of whom may never have considered going down the AIM-listing route. But actually, by putting their businesses on AIM they achieve a public listing, a higher profile and massively improved liquidity in the shares of the business. If they also wish to retain a meaningful stake in their business, then despite listing on a formally recognised stock exchange their stake remains eligible for BPR and therefore exempt from IHT.

The emergence of regional growth funds that are rapidly developing local networks and partnering with businesses at a slightly earlier stage is also extremely helpful.

If you have worked incredibly hard to build up your business, you retain a meaningful equity stake in it, and you’ve got it to a level where a public listing makes sense, then where would you choose to list? In my mind AIM is the ideal and obvious choice.

The same logic applies to potential investors in our portfolio service. The government has encouraged us all to make the most of our ISA opportunities. For those ISA holders of advancing years, there is now the option to further mitigate their

inheritance tax liabilities in a simple and relatively risk controlled way. Again, it seems to me the choice is simple. Put the tax planning in place and invest in some great companies at the same time. I hate to use clichés, but over the long term I really believe this can become a ‘win-win’ opportunity.

Around six million of the UK’s total 23 million ISA investors are now over the age of 65


Take an Alternative View in 2016

Christmas and New Year celebrations are now over and the sober dawn of January 2016 has arrived. What sort of year will it be for alternative investment companies?

Well let’s take a look at 2015 first, which was a record-breaking year for the investment company sector, with net fundraising at a high of £5.38 billion. Of course, 2015’s largest ever UK domiciled investment company launch, Woodford Patient Capital, which raised £800 million at launch, contributed to this total by investing in both quoted and unquoted UK companies. It was a good year for smaller companies in general with the average VCT up 7% over the year to end of November, whereas the average investment company performance was more muted, up 3% following the recent years of double digit returns.

The demand for specialist assets generating a high yield also contributed to a good year for new issues, with £2.67 billion raised so far and, with demand for income continuing to dominate. New issues have tended to be in the higher yielding alternative sectors and the average yield for new issues in 2015 was a hefty 6.56%. Looking forward into 2016, with interest rate rises looking less likely in the UK for at least the immediate future, if not the whole of 2016, it’s likely that demand for income will continue to

dominate. Launches for the last couple of years have been dominated by high yielding specialist alternative assets, like infrastructure, illiquid debt and property. The closed-ended structure of the investment company sector is particularly suited to these types of illiquid assets and it looks likely that there will be further demand for these in 2016.

2015 was also a record breaking year for share issues on the secondary market (existing investment companies raising new money) and £4.81 billion was raised on the secondary market compared to £3.61 billion in 2014 and £3.85 billion in 2013 (the previous record). It was also companies investing in alternative assets generating strong yields which have tended to raise the most on the secondary market. P2P Global Investments in the Sector Specialist: Debt sector raised the most, with £671 million, some £650 million of which was via two C share issues. Renewables Infrastructure Group (Sector Specialist: Infrastructure) raised £316 million on the secondary market, whilst Kennedy Wilson Europe Real Estate (Property Direct – Europe) raised £300 million on the secondary market. Empiric Student Property (Property Direct – UK) issued £246 million of shares on the secondary market and Tritax Big Box (Property Direct – UK) raised £229 million.

Annabel Brodie-Smith, Communications Director of Association of Investment Companies (AIC), says diversifying asset classes will be key this year and alternative investments provide an opportunity

Sector Performance

0% 100%

Private Equity

Natural Resources

Financials & Commodities

Technology


Looking at prospects for alternatives it’s interesting that in the AIC’s investment company poll, managers are favouring a more diverse mix of asset classes. Whilst just over half (52%) expect equities to outperform other asset classes this year, a significant number of managers are looking elsewhere: 10% think gold could outperform, 10% are looking to commodities and natural resources after a tough 2015 for them, and a further 10% think commercial property looks the most attractive for 2016. Alternatives also featured amongst the sectors tipped to perform well next year. Smaller companies, which performed well in 2015, are the sector most expected to outperform (32%), followed by technology (18%), financials and commodities and natural resources (each 14%) and private equity (9%).

Moving on to VCTs, 2015 was a good year for the sector with strong performance and fund raising for the 2014/15 tax year at £429 million. This was the fourth highest level ever of annual funds raised and the highest amount raised since 2005/6. The changes to the VCT rules brought about by the European Commission’s re-approval of the VCT scheme have now been finalised. The main UK rule changes are that VCTs can no longer invest in management buy-outs. In addition, investee companies are subject to a £12 million investment lifetime limit or a £20 million lifetime limit for knowledge intensive companies. There is an age of investment rule so investee companies cannot receive their first investment

more than seven years after making their first commercial sale, again unless the company is knowledge intensive, in which case the age limit is 10 years. This age of company rule does not apply where the VCT’s investment is more than 50% of the average turnover of the company over the last five years.

There has been much speculation on the impact of these rule changes in 2016 and clearly they will have more impact on some VCTs’ strategies than others.

Ian Sayers, chief executive of the AIC, said: ‘Though not all of these changes are welcome, adaptability is one of the key strengths of the sector, which has faced such challenges in the past and has coped well. We are confident VCTs and their managers will do the same again.’

This view was echoed by Paul Latham, managing director at Octopus Investments, who said: ‘Changes to VCT rules, such as those outlined by this year’s Finance Bill, are nothing new – almost every year there has been some change – and the industry has learned to adapt. Furthermore, investments that have already been made into VCTs aren’t impacted, and therefore a specific VCT won’t initially look any different to the shareholder after the legislation comes into force.’

Finally, partly due to the pension freedom changes introduced last year, there has been an increasing interest in multi-asset funds. The investment company, BlackRock Income Strategies changed their management group from F&C and changed their investment policy to a multi-asset strategy, with a focus to preserve capital in real terms and to grow the dividend at least in line with inflation. It is therefore appropriate that in January the AIC will introduce a new investment company sector, Flexible Investment. This sector is for companies whose policy allows them to invest in range of asset types.

The name of this sector mirrors the sector name used by the Investment Association and will help investors and advisers easily find and compare those investment companies which have the ability to invest in a range of assets. Importantly, the introduction of the Flexible Investment sector will also allow investors to compare investment companies with similar open-ended funds. Some well-known companies such as RIT Capital Partners, Personal Assets Trust and Ruffer Investment Company are going to be in the new sector. Of course, it’s difficult to accurately predict what’s in store for investment companies investing in alternatives but it’s clear that alternatives are an important way to diversify investors’ portfolios, and with the future direction for equity markets looking uncertain and interest rates likely to remain low, this looks set to continue in 2016.

2015 was also a record breaking year for share issues on the secondary market

Of Managers Expect Equities to Outperform Other Asset Classes Share Issues on Secondary Market

£3 Billion

2013 2014 2015

£4 Billion

£5 Billion


A New Venture

Venture capital can be broadly defined as investment into young companies that have developed innovative products or services, or into companies that have already begun to expand rapidly and need funding to fuel further growth. It generally involves substantial risks weighed against the possibility of substantial returns.

In almost all cases, companies that receive venture capital funding are loss-making at the time of the investment. So investment managers have to judge whether the funding can accelerate the growth of the company and create a significant increase in the business’s value.

The manager also needs to think about how that value might eventually be returned to the investors, because shares in small, private companies cannot be easily sold. A stock exchange listing or a full sale of the business are usually the only ways to exit an investment, so investors may need to wait for a long period of time before they see a return on their money.

But the returns can be worth waiting for. Top-performing venture capital funds can produce a return equivalent to more than 20% per annum, according to Preqin, compared to the typical 5% to 8% returned by public markets. And, of course, there is always an outside chance of a single company producing a spectacular result. Accel Partners reportedly turned their $12.2 million investment in Facebook into $10 billion of shares when Facebook floated in 2012.

What Types of Company Do Venture Capital Funds Invest in?

Venture capital investment in the UK spans everything from healthcare to the leisure sector. Most investment managers focus on particular industries or investment themes.

For example, Oxford Capital’s Growth EIS typically invests in UK technology companies. Of course, the world of technology is always changing, so our approach to investing has to continually evolve to keep pace. We’re particularly interested in identifying potential leaders in niches where UK market conditions will foster rapid growth.

Right now we see great opportunities in a range of areas. These include:

• eCommerce – the UK has one of the highest levels of ecommerce penetration and one of the most sophisticated retail markets in the world.

• Gaming – the UK has a long and proud track record of producing some of the most iconic games and gaming franchises – from Tomb Raider to Candy Crush.

• Financial technology – the UK remains a global centre of the financial services industry and London is the beating heart of this.

Tom Bradley, Partner at Oxford Capital and Head of its Growth Investment Team discusses venture capital and how it can provide an opportunity for advisers, as long as they know what they’re looking for


• Machine learning and Artificial Intelligence – the UK is at the forefront of research in this sector with several leading companies such as Deepmind and VocalIQ being gobbled up by US behemoths looking to acquire their unique expertise.

• Digital health – the UK has always been an innovator in the provision of health services. The unique nature of the NHS can represent a significant barrier to companies coming to market but as demographics outrun

the capability of the NHS, there are also great opportunities to innovate.

How Does Venture Capital Fit Into a Client’s Portfolio?

Unfortunately, companies like Facebook are rare beasts. And the risks and illiquidity of venture capital investment mean that it isn’t right for everybody, even taking into account the incentives and downside protection offered by EIS and VCT structures.

Clients considering investment in venture capital schemes will fit this profile —

• Significant liquid capital. Investors should only commit a small proportion of their overall wealth to venture capital, retaining sufficient assets to fund their lifestyle and needs.

• Prepared to take a long-term view. For venture capital portfolios to succeed, investors usually need to play the long game. The average

HALF FULL PAGE ADVERTThis is a �nancial promotion issued and approved by Calculus Capital Limited (FCA No. 190854).

Not to be relied upon by Retail investors. Please read the risk factors in the Prospectus

This is a �nancial promotion issued and approved by Calculus Capital Limited (FCA No. 190854).

Not to be relied upon by Retail investors. Please read the risk factors in the Prospectus

holding period is roughly seven years, according to Towers Watson and investment managers will hold on to companies until they think they can maximise returns. Clients need to be comfortable with this approach and understand that they will not be able to access their committed funds until the companies in the portfolio are sold.

• A big appetite for risk. Venture capital investments are not for the faint-hearted. There are many examples of ultimately successful companies or investments that flirted with disaster in their early years. Across a portfolio of venture stage companies there will always be some companies that are up and some that are down. It is usually the case that the underperforming investments will show themselves sooner than the high performers. Clients need to understand these aspects of venture capital before investing in it.

Why Should Clients Consider Investing In Venture Capital?

The potential for big returns is clearly the main draw for most clients who choose to invest in venture capital. But it is by no means the only reason to invest. Some clients are motivated by the excitement and sense of participation that comes from holding a venture capital portfolio.

Venture capital usually funds high-risk, high-potential activity that requires a level of focus and adaptability that only dynamic businesses can achieve. Investment managers aim to invest in companies that are challenging the norms, trying to create highly innovative products or even seeking to disrupt entire industries. EIS and VCTs make it relatively easy to become a shareholder in a portfolio of companies that fit this mould. This can be inherently interesting and

rewarding for a client, particularly if they can build their portfolio with an investment manager who focuses on an industry sector that they are passionate about.

The UK’s venture capital schemes also allow clients to make a contribution to UK plc. EIS and VCT funding flows to companies that are building value, creating jobs, paying taxes and making a vital contribution to our economy. Of course, investors will first-and-foremost be hoping for a good return on their investment. But there is no denying that being a paid-up contributor to the UK’s world class venture capital scene can offer some clients a feel-good factor.

Why Is Now The Right Time To Invest?

For any early-stage business, the chances of success are greatly improved when the company:

• Is well-funded• Is well-managed• Has a clear sense of purpose• Has a strong product capabilityIn the last 15 years the market has

developed immeasurably on each of these fronts and continues to do so. There is more smart capital available to startups – venture capital funds that produced good returns while surviving the dotcom bust, the popping of debt bubble and the subsequent financial crisis have been joined by new funds often managed by former entrepreneurs. So there are more funding sources, and the investors can offer companies a higher level of expertise and strategic guidance.

The UK also now has a much bigger pool of talented, seasoned entrepreneurs, who are building new businesses having already

successfully sold one or more previous ventures. The maturity of the UK’s entrepreneurial community is a real advantage for investors. Companies that are run by entrepreneurs with a track record of success tend to be more focused, more purposeful and will usually succeed (or fail) faster.

In recent years, the type of companies that receive venture capital funding has broadened away from pure technology businesses. There has been a growing realisation that businesses do not need to have developed unique technology, intellectual property or know-how in order to become successful venture capital investments. Consumers and businesses are looking for products and services that solve real problems. Elegant solutions that meet a customer’s need can often create significant value, even if they are built on a platform that is not unique or proprietary.

As we look ahead to 2016, we are likely to see the start of a period of rising interest rates. Many have speculated that this may cause a withdrawal of capital from venture markets as investors are able to find more return in less risky asset classes. This may prove to be the case, but in general we are sanguine about the state of the market and the opportunity. Entrepreneurship is now a legitimate career choice and venture capital is a long-term pursuit. The combination of committed founders and patient investors with innovative products and services has the potential to ride out short-term market or economic fluctuations.


FULL PAGE ADVERT

Delivering calculated excellence for your clientsWe 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 clients’ 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.

24085_Puma Advert_A4_AW.indd 1 08/09/2015 11:11

Taking AIM at Inheritance Tax

One of the most heralded government announcements during 2015 was the well-publicised addition to inheritance tax (IHT) rules, with the introduction of the ‘main residence nil-rate band’ for the estates of those who die after 6th April 2017.

This is a supplemental allowance applying specifically to a property that would have been a person’s home at some point. It will be phased-in from April 2017, starting at £100,000 per person, and increasing by £25,000

every April until 2020, when the maximum of £175,000 will be reached.

This allowance is to be used alongside the existing nil-rate band, whereby the first £325,000 of an individual’s estate is inheritance tax-free, but everything over this threshold can be taxed at 40%. The nil-rate band has remained static since April 2009. In the following six years, house prices soared 44%. With the average cost of a UK house predicted to rise around £60,000 by 2020, thousands more homes are expected to exceed

the £1 million threshold by the time it comes into force. And there are other restrictions relating to the main residence nil-rate band:

• It will only apply to people with direct descendants (children or grandchildren) they plan to leave their home to.

• Anyone without a property worth at least £175,000 per person, or £350,000 per couple, will only partially benefit, or – if no property is owned – will not benefit at all.

Paul Latham, Managing Director of Octopus Investments, says more families are being hit by inheritance tax but advisers have new tools at their disposal to help them


• Anyone who sold their property before 8 July 2015 – for example, because they are in residential care or living with their children – will not benefit from the new allowance. Provision is being made for disposals after 8 July to be protected in some circumstances.

• Estates worth more than £2 million will find their entitlement to the residential nil-rate band scaled back.

Now seems a good time for people to revisit their existing wills and estate planning, to determine whether they need to be thinking about alternative ways to plan for their estate. After all, the burden of paying an IHT bill falls on the executors, potentially making what is already a very difficult time for family and loved ones even more difficult.

ISAs Can Be Liable For IHTISAs are exceptionally popular

financial products and the cornerstone of savings plans for many millions across the country. However, they present a threat – and also a potential

investment opportunity – for people planning to reduce IHT liabilities to consider. The largest group of ISA investors is aged 65 and over and this group also hold the largest amounts in their ISAs. But while ISAs offer valuable benefits during an investor’s lifetime (such as no tax to pay on any income or capital gains made from your ISA investments), many ISA holders will not be aware that ISAs are subject to IHT like everything else. This can be particularly concerning for investors who have accumulated large sums in ISAs over the years.

Until recently, spouses lost the tax benefits on any ISAs left to them by their late husband or wife. However, the December 2014 Autumn Statement gave spouses an additional one-off allowance that would allow them to re-invest up to the amount of ISA their spouse had built up and thereby retain the tax benefits in their own name. Surviving spouses don’t even need to be left the ISA – they can just make a new investment up to the limit of what their spouse had invested, which is a

significant benefit. Spouses are also given the option to change the ISA provider upon transfer, rather than being obliged to continue using the same ISA manager, and holding the previous assets, as the deceased.

Not all estates are going to benefit from the new ISA spousal transfer rules, however, meaning that there could still be a dilemma for some investors with significant ISA holdings. On the one hand, these investors can keep their ISA money invested, continuing to get tax-free growth and income but recognising that the value of their estate would be impacted upon their death. On the other hand, they could do some estate planning by cashing out their ISA and then gifting or moving the proceeds into a trust. Neither option is necessarily satisfactory for the end investor.

Introducing AIM Shares To ISAsIn August 2013, the government

announced that shares listed on the Alternative Investment Market (AIM) could be held in ISAs. AIM


was launched by the London Stock Exchange in 1995. Many AIM-listed companies qualify for what is known as business property relief (BPR). Introduced in 1976, BPR was created to allow small businesses to be handed down through generations without incurring IHT liabilities. Its scope has been widened in subsequent years, so that it isn’t just father-and-son-enterprises able to benefit. Shares that qualify for BPR fall outside of the scope of IHT as long as the shares have been held for just two years, and are still held at the time of death.

IHT planning through an ISA can also deliver several other benefits. For example, clients retain access to their investment, allowing them to build capital value, take a regular income, or to dispose of their holding if circumstances change. In addition, investing their ISA in companies expected to qualify for BPR means clients can avoid the type of complex legal structures, underwriting or medical questionnaires required for some types of estate planning.

Understanding The RisksThere are, of course, risks for

potential investors to consider, as investment capital is at risk and investors may not get back the amount invested. In addition, the performance

of companies listed on AIM tends to be more volatile than those listed on the main London Stock Exchange, which means their value can fall or rise by greater amounts on a day-to-day basis. Therefore, investing an ISA into AIM stocks should be considered higher-risk than a mainstream stocks and shares ISA product, hence the government-approved tax reliefs that are available. No matter how well an investment or market may have performed in the past, this is not a guide to its future returns.

There are also specific risks around BPR-qualifying investments. BPR is not available on every AIM-listed company and the qualification can change over time. It’s important to understand that IHT exemption is assessed by HMRC on a case-by-case basis when an investor dies. Until this happens, it cannot be stated for certain that a particular company, or even portfolio of companies, will qualify for BPR.

Who Would An AIM ISA Be Suitable For?

The estate planning benefits mean that ISAs investing in AIM-listed companies may be effective for ISA transfers, particularly for older investors who have large estates and significant ISA portfolios. However, we believe other investors could benefit

as well – not least those who may have been left their spouse’s ISA recently, who could therefore suddenly have a greatly-inflated ISA of their own, and could therefore be looking for a new home for it. Additionally, many forms of IHT planning put the money permanently out of reach. This can be restrictive in terms of dealing with any challenges that come up in the years before the investor passes on. However, by keeping the investment in their own name, they can feel reassured that the proceeds are accessible when required.

SummaryA mainstream stocks and shares

ISA holder with a portfolio worth £100,000, with their nil-rate band used up by the value of their property, risks leaving their family facing a £40,000 IHT bill. Now, those who are comfortable with the risks of investing in smaller companies have the option of transferring their ISA into AIM-listed, BPR-qualifying stocks, and completely wiping out the IHT liability after just two years, without losing any of the ISA tax benefits they’ve accumulated. This could prove to be an effective way to ensure an ISA lives up to its tax-free status, both before and after death.


Open OffersHighlighting some of the key tax efficient investment offerings currently available to IFAs

SEIS EIS VCT SITR IHT BPRInvestment Key:

The Octopus Enterprise Investment Scheme (EIS) is offering investors a final opportunity to invest in companies that generate energy before Government changes to EIS rules come into effect in April 2016. Octopus EIS is open for investment until 24 March 2016 (17 March is the last day on which we can receive cheques). However, we may close sooner if we reach capacity.

Why Octopus EIS?• Energy expertise: The Octopus Investment Team has considerable experience investing in the energy sector. Over the last five years, we have invested over £1bn in the area. Octopus EIS is expected to invest in energy companies that have the right characteristics for targeting capital preservation. • Tax reliefs: Up to 30% income tax relief, the opportunity to defer capital gains tax and 100% relief from inheritance tax so long as required holding periods are met.• Deferred charges: the annual management charges on Octopus EIS are deferred until after the minimum three-year holding period, and are only taken once investors have had the opportunity to have their capital returned.

Understanding the risksThere are a number of risks that potential investors need to think about carefully when considering investing in EIS products. The value of your investment could fall or rise and you may not get back the full amount invested. Tax treatment depends on individual circumstances and may change. Any claimable tax reliefs will depend on companies maintaining their EIS-qualifying status. Smaller company shares are often more volatile than those listed on the main market of the London Stock Exchange and can be harder to sell.

T. 0800 316 [email protected]

www.octopusinvestments.com/eis

Octopus Enterprise Investment Scheme – final opportunity to invest in companies that generate energy

Amount to be Raised: £20m

Open08/01/16

Close24/03/16

EIS

Open01/06/15

Close05/04/16 A unique opportunity, in an Olympic year, for certified high net worth individuals

and self-certified sophisticated investors to invest in a portfolio of high quality showjumping horses possessing World Championship or Olympic competition potential.Britain has long been a world leader in sports horses which (together with racehorses) is estimated to be worth £8 billion to the economy with horses on the international showjumping championship circuit regularly changing hands for millions of pounds.An investment in LSL represents an opportunity to be involved in this glamorous arena, together with the potential for financial returns with mitigation of risk through diversification of investing into a number of horses.Eligible individuals benefit from 30% income tax relief, targeted tax free returns , capital gains tax deferral and inheritance tax relief.

Lillybrook Showjumping EIS

T. 01242 210918E. [email protected]


Minimum Investment: £10,000

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. The Deepbridge Technology Growth EIS is a diversified portfolio of actively managed high-growth companies seeking commercialisation funding. The Deepbridge EIS invests in companies that have a proven technology, clear intellectual property and are operating 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 technologyThe target return for the Deepbridge Technology Growth EIS 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.

T. 01244 746000www.deepbridgecapital.com

Deepbridge - Technology Growth EIS

Amount to be Raised: Uncapped

Open01/08/2013

CloseN/A

EIS

The Triple Point EIS Service targets investments across a range of sectors including infrastructure and construction. The investment strategy has been shaped by our extensive and successful experience managing over £100m of EIS qualifying investments to date, where we adopt a cautious and meticulous approach to managing investors’ capital without losing the ability to capture growth opportunities.The investment strategy is built around identifying the right opportunity, using our rigorous risk management processes. This focuses on selecting companies for funding which meet our key criteria for capital security and transparent exit strategies. We target high quality, simple investments and cash generative businesses; such as those in the current pipeline of Combined Heat and Power, which qualify for EIS tax benefits and target returns of £1.10 to £1.15 per share.In this tax year it is expected that shares will be allotted through the EIS Service into 2 or more EIS companies that, on financial close, are looking to either construct new facilities or refurbish and extend existing energy centres, incorporating combined heat and power plants (“CHPs”).The Triple Point EIS targets opportunities that are designed to facilitate an exit for investors after three years, which we have a excellent track record in achieving. Please contact the sales team for more information. Investments can be illiquid and the value of your investment is not guaranteed.

T. 020 7201 8990E. [email protected]

www.triplepoint.co.uk

Triple Point EIS Service

Amount to be Raised: Unlimited

OpenNow

CloseEvergreen

EIS

Min Investment: £25,000


Puma EIS employs an investment strategy similar to that successfully deployed by the Puma VCTs and aims to provide investors with downside protection in a carefully managed portfolio. Building on Puma’s established track record in tax efficient investments, Puma EIS targets asset-backed businesses aiming to provide downside protection for investors through a portfolio exposure to HMRC pre-approved companies. Successful Deployment: Puma EIS was the largest fundraise of any new EIS with a capital preservation strategy launched in 2013/14 tax year. All funds raised were successfully deployed into companies with HMRC Advanced Assurance before the end of the tax year end. Allotment Dates: The discretionary management service has no fixed closing date. Puma EIS intends to make quarterly allotments with an allotment shortly in advance of the tax year each year. Strong Track Record: Building on the market leading track record of the Puma VCTs which operate a similar asset-backed investment strategy. Realisations: It is envisaged that investments in Qualifying Companies will be realised within 3 to 5 years. Investment Size: Minimum subscription is £25,000 with no upper limit.

PUMA INVESTMENTS - PUMA EIS

T. 020 7408 4070E. [email protected] www.pumainvestments.co.uk

OpenJanuary 2014

CloseQuarterly

EIS


TIME:EIS invests in shipping, offering investors an asset backed opportunity in a global industry that has been established for thousands of years. Shipping is a sector recently identified by the Government as vital to the UK economy and one it is keen to support.Targeting a base case return of £1.27 in addition to the 30p initial income tax relief. This non-contentious business model makes TIME:EIS an excellent fit within the EIS regulations – which is why advance assurance from HM Revenue & Customs has already been granted. TIME:EIS has an initial capacity of £20 million which will be split across four tranches. Alongside our specialist EIS team, support is provided by third parties with substantial experience in shipping.

TIME has used its skills in structuring EIS deals to mitigate risks where possible. This includes:• Owning the asset (the ship) which has a resale value;• Buying each ship without the use of debt;• A focus on long term charters to provide a more predictable revenue stream;• Hedging strategy for foreign currency;• Advance assurance from HMRC has been granted for EIS qualification.

TIME Investments TIME:EIS


www.time-investments.com


OpenDecember 2015

CloseAt Capacity

EIS


Calculus Capital, creators of the UK’s first approved EIS 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.


www.calculuscapital.com

Calculus Capital EIS Fund 16



Open04/06/2015

Close24/06/2016

EIS

The MMC Ventures EIS Fund offers investors exposure to a portfolio of hard-to-access fast growing private companies, combing real capital upside potential with generous EIS tax reliefs. Founded in 2000, MMC is regularly rated as one of the top 5 most active venture investors in the UK, investing circa £20 million per annum in a combination of new deals and follow-on capital for existing portfolio companies. An investor in the MMC EIS Fund can expect a portfolio of 8-12 companies within 12-15 months of subscribing. The MMC EIS Fund is categorised as a generalist product but they have a clear investment focus on technology-enabled sectors where the UK is a world leader - particularly financial and business services, business software, digital media and consumer internet. MMC’s fundamental approach is to invest on the commercial merits of each transaction, viewing the EIS tax benefits as highly desirable but not the reason to invest. This approach is reinforced by their policy of co-investing their EIS Fund alongside other funds they manage that do not qualify for EIS tax relief.


www.mmcventures.com

MMC Ventures - EIS Fund OpenNow

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EIS

Minimum investment: £25,000

Symvan’s funding strategy embodies the continuity of our philosophy: The greatest potential gains in venture capital investing rest with the successful early-stage investor. Symvan Capital is currently marketing the Symvan Technology EIS Fund. The fund invests in high-growth technology companies. Symvan’s ‘life-cycle’ approach to EIS investing mitigates early-stage risk of the investment proposition. Symvan has seeded the investee company and raised money through our angel investor network, thus ensuring that the Fund invests in companies that Symvan knows well through board representation, have reliable corporate governance and are exposed to a broad range of sectors.T. 020 3011 5095/5096

E. [email protected]

Symvan Technology EIS Fund


Open08/10/15

CloseN/A

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 £1 invested (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.


www.oxcp.com

Oxford Capital Infrastructure EIS

Amount to be Raised: No Max


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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.


www.oxcp.com

Oxford Capital Growth EIS



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EIS

Rockpool’s EIS Portfolio Service offers an alternative to traditional EIS funds as all investment is direct into the high quality private companies that Rockpool have selected. Investors can build a portfolio of EIS qualifying private company investments that suits their investment strategy and required diversity through the Managed service. Or they can choose which companies to invest in and build a bespoke portfolio through the Self-select service.

Two strategies are available: Growth and Asset-rich. Asset-rich sectors include crematorium operation, construction project delivery, managed storage services and children’s nurseries. Rockpool’s model offers full transparency and control with opportunities to meet the management, regular updates on the investment performance, and an on-line portal for latest valuations. ∞ Managed service – Minimum application of £10,000 with a minimum investment of £2,500 per company.∞ Self-select - Minimum investment of £10,000 per company.T. 0207 015 2150


Rockpool’s EIS Portfolio Service

Minimum Subscription: £10,000

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EIS


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 125p/£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.


Goldfinch Entertainment EIS & SEIS Investments

Minimum Investment: £5000

Amount to be Raised: Various

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EIS SEIS

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:• Business Property Relief (Minimum Subscription £40,000)• Diversified Growth • Asset Backed• Seed & Early Stage Growth• Mature Growth• Long Term Investment Focused• Media• Seed EIS StrategyT. 020 7952 6685


Kuber Ventures Multi Manager Platform


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EIS SEIS


We are pleased to follow-up our first two funds with a combined SEIS and EISFund (‘Fund 3’). Our offering allows investors to choose whether they wantto 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 disruptivetechnologies to be nurtured alongside existing investment opportunities thatrequire follow-on investment to fully exploit commercialization of a provenbusiness model. At Jenson we aim to offer these businesses far more than just funding. To date, we have actively advised entrepreneurs to re-evaluate businessmodels, reduced projected costs and introduced potential executives, partners,customers and suppliers as part of the value added service we provide. Furtherwe believe the addition of an experienced finance director to the managementteam of Investee Companies, even on a part-time basis, will enhance returns. Thisis why each investment is allocated a Jenson finance director a key differentiationbetween 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.


www.jensonfundingpartners.com

Jenson Funding Partners - SEIS & EIS Fund 3


OpenJanuary 2015

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EIS SEIS

CHF Enterprises Ltd (CHF) presents an exciting and unique opportunity for UK tax payers to invest in both SEIS and EIS qualifying shows and concepts, whilst also benefitting from risk mitigation in the form of seed and traditional EIS reliefs and Government backed Animation Tax Credits. The company has a strong and proven track record: over the past 40 years, Cosgrove Hall have produced iconic children’s programmes such as Danger Mouse, Postman Pat, Roary the Racing Car and others, and CHF has a multi BAFTA and International Emmy award winning creative team • One of its recent shows, Pip Ahoy! was funded via CHF’s own in-house EIS offering and is now on air on channel 5’s Milkshake every weekday for 5 years, to great media acclaim.The shows and concepts may have multiple revenue streams from Broadcast and License and Merchandising sales with unlimited investment returns. Shows are produced in the UK and should qualify for the Government’s Animation Tax Credits.T. +44 (0)845 512 1000


CHF Enterprises


OpenJanuary 2015

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EIS SEIS


Seed EIS Platform is a multi-function platform which works with intermediaries to provide SEIS and EIS eligible single company investments. Offering direct investment or a managed portfolio solution, the platform also acts as custodian, enabling centralised reporting and management of fees. 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.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.

T. +44 (0)20 7071 3945 E. [email protected]

www.seedeisplatform.com

Seed EIS Platform - Crowdfunding for Advisers



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EIS SEIS

Open01/07/2015 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 therapiesThe 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.

T. 01244 746000www.deepbridgecapital.com

Deepbridge Life Sciences SEIS

Amount to be Raised: 1.5m

Close24/03/2016

SEIS


Puma VCT 12 builds on the market-leading track record of previous VCTs. Puma VCT 12 will adopt the same, proven investment strategy primarily investing in established businesses in the form of ordinary equity together with senior secured loans. Strong Track Record: Puma VCTs I to V head their peer group for total return. Puma VCT V, the latest VCT to close delivered a total return of 106.3p per share, (equivalent to a 9.4% annual return) making it the highest return to date for a limited life VCT.

Dividends: Target average annual tax-free dividend equivalent to 5p per share over the life of the fund, commencing from April 2018.

Five Year Life: It is envisaged that after 5 years, the Directors will propose a special resolution for shareholders to vote on the process of winding-up the Company. Investment Size: Minimum subscription level is £5,000.

PUMA INVESTMENTS - PUMA VCT 12



OpenNovember 2015

Close05/04/2016

VCT

Calculus Capital are best known in the market for their skills and experience as aninvestor in established, unquoted SMEs. The awards we regularly win are evidence ofthat. Our long standing investment team and diligent investment process have led toan 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 trackrecord of delivering dividends to investors.• By co-investing in selected established companies through both VCT and EIS, we areable to choose larger companies and bigger deals – reducing the risk profile of the investment.• Our experienced investment team and thorough investment process have producedimpressive dividend performance and exit returns for investors.

• Early bird discounts:1.0% discount for subscriptions received by December 18th0.5% discount for subscriptions received from December 19th to January 29th0.5% additional discount for existing Calculus VCT plc investors

The full Prospectus is available on our website: www.calculuscapital.com


www.calculuscapital.com

Calculus VCT plc D Share Offer is OPEN for Subscription


Open26/10/15

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VCT


Amati Global Investors is a well-established manager of AIM-based VCTs. The Offersprovide existing and new investors the opportunity to invest in one or both ofAmati 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).•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 transparentmarket pricing and reasonable liquidity.• Minimum subscription £3,000 or £2,500 per VCT if applying for both Offers.

Should you wish to receive monthly Amati fund factsheets, please requestfrom [email protected]

Amati VCTs Top Up Offers 2015/2016 and 2016/2017


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VCT

Stellar Estate Planning Service is a discretionary managed portfolio designed to preserve capital and distribute an income of 4.5% per annum. The Service will commit capital to asset classes that qualify for Business Relief to provide 100% relief from Inheritance Tax after two years. An investment in The Service will be diversified across three trading sectors which generate income organically including Construction finance, Hotels and Renewable energy.

Key Benefits:

• 100% relief from IHT after only two years• Complete control and full access to capital• Diversified & Asset backed portfolio• Focus on Capital Preservation• Uncapped target income of 4.5% pa (net) An income of 4.5% per annum is distributed bi-annually; investors who do not require the income can elect to re-invest it.

We offer a unique, but optional, insurance policy across our IHT products to protect investors from any future loss of value.

Stellar Asset Management – Stellar Estate Planning Service



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IHT


Stellar Succession utilises Business Relief to provide 100% exemption fromIHT 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 tradingcompany, which allocates capital to diversified portfolio of asset backed, BusinessRelief qualifying trading activities including Forestry, Farming, BridgingFinance, Hotels and Renewable Energy.

Key Benefits:

• 100% relief from IHT after only two years • Focus on capital preservation• Complete control and full access to capital • Access to growth or income trades• Diversified and non-correlated • Uncapped target return of 5% pa (net)• Asset backed

We offer a unique, but optional insurance policy across our range of IHT productsto protect investors from any future loss of value and ensure beneficiaries always receive the original amount invested as a minimum.

Stellar Asset Management – Stellar Succession



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IHT

Stellar AIM IHT Portfolios provides investors with 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 • Potential for growth• Complete control and full access to capital • Easy access & liquidity• Now available via PlatformThis service is suitable for those who wish to transfer existing stocks and shares orhave cash holdings to invest into a portfolio of AIM listed shares which qualify forBusiness Relief.The investment strategy exercises a well-diversified, disciplined stock selection policywhich focuses on long-term capital growth and risk mitigation.

We offer a unique, but optional insurance policy across our range of IHT products toprotect investors from any future loss of value and ensure beneficiaries always receive the original amount invested as a minimum.

Stellar Asset Management – Stellar AIM IHT Portfolios



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IHT


Stellar AIM IHT ISA provides clients with a diversified portfolio of AIM listedcompanies in a tax free ISA wrapper with the option of a unique insurance policy toprotect investors from any future loss of value. Our AIM ISA is one of the most tax efficient investment opportunities available on the market.

Key Benefits:

• 100% relief from IHT after only two years • Income Tax free• Complete control and full access to capital • Capital Gains Tax free• Easy access & liquidity • Potential for growth• Now available via Platform

This service is suitable for both those who wish to make their new ISA savings andcurrent ISA holdings IHT efficient.The investment strategy exercises a well-diversified, disciplined stock selection policywhich focuses on long-term capital growth and risk mitigation.We offer a unique, but optional insurance policy across our range of IHT productsto protect investors from any future loss of value and ensure beneficiaries always receive the original amount invested as a minimum.

Stellar Asset Management – Stellar AIM IHT ISA



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IHT

Amati Global Investors offers a discretionary managed AIM portfolio service whichadvisors can access for their clients on the Transact platform. The Service has recentlypassed its one year anniversary, having returned 34.5% vs -3.6% FTSE AIM All ShareIndex TR since launch (Period 29 August 2014 – 30 November 2015 Source: AmatiGlobal 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 technologycompanies; and special situations with attractive yields. The client portfolios aremanaged 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.

• 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 requestfrom [email protected]

Amati AIM IHT Portfolio Service on Transact


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IHT



Puma Heritage’s core focus is on secured lending. Its primary objectives are to preserve capital and mitigate risk. Strategy: Conservative trading strategy focused on secured lending. Flexibility: Choice of income or growth shares and ability to switch between them. Directors: Three experienced Directors bringing a multi-disciplinary approach. Experienced Adviser: Puma Heritage has appointed Puma Investments as its trading adviser. Aligned Interests: The interests of Puma Investments (the trading adviser) and Shareholders are entirely aligned: Puma Investments will not receive any performance fees and its annual advisory fees are only paid in full if the minimum target annual return is paid in full. Liquidity: Twice yearly opportunity to access capital (subject to terms set out in the Prospectus). Subscription Amount: Minimum subscription of £25,000 with no maximum. Inheritance Tax: It is intended that a subscription for shares in Puma Heritage will benefit from relief from Inheritance Tax provided the shares have been held for at least 2 years prior to and at the point of death.

PUMA INVESTMENTS - PUMA HERITAGE



OpenJune 2013

CloseMonthly

IHT

Puma AIM Inheritance Tax Service is a discretionary service that seeks to mitigate Inheritance Tax by investing in a carefully selected portfolio of AIM shares. The Puma AIM Inheritance Tax Service is also available in ISAs.

Portfolio Service: A discretionary portfolio service that seeks to deliver long term growth focusing on quality companies listed on AIM. Inheritance Tax: It is intended that investors will benefit from relief from Inheritance Tax provided investments are held for at least 2 years prior to and at the point of death.

Minimum subscription of £15,000 with no maximum.

Available in ISAs: Whilst ISAs are extremely tax efficient during the holder’s lifetime, upon death ISA balances may be subject to a 40% IHT liability. Investing in a portfolio of qualifying AIM stocks allows holders to mitigate Inheritance Tax while still retaining the benefits of an ISA. ISA Transfers can be accepted from existing providers as well as new investments.

PUMA INVESTMENTS - PUMA AIM INHERITANCE TAX SERVICE


OpenOctober 2014

CloseOpen Ended

IHT


Rockpool’s Managed Inheritance Service is designed to deliver 100% exemption from inheritance tax after two years. Investment through the Rockpool’s Managed Inheritance Service will be made in unquoted shares in specialist lending companies who provide loans to corporate borrowers. Our objective is to deliver a 5% net annual return with low risk to capital and the flexibility to take income or accumulate gains. The service has a simple, low cost transparent structure. Rockpool’s Managed Inheritance Service facilitates adviser charges or introducer fees.

Rockpool’s Managed Inheritance Service


www.rockpool.uk.com


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IHT


The Triple Point Estate Planning Service allows clients to access both of Triple Point’s established strategies, Navigator and Generations, through one simple application. Triple Point has a proven and consistently profitable 10 year track record in asset finance. The two underlying strategies; Navigator and Generations, focus on the provision of assets to institutions such as the NHS and Local Authorities (fewer, higher value transactions), and the provision of working capital funding to businesses (multiple, lower value transactions), respectively. Investors can chose their own allocation between these two strategies. This provides target returns to investors in the range of 1.5% to 6.0% net of fees, charges and corporation tax. To summarise the two strategies:

• Navigator Strategy: leasing and lending to a large and diverse range of UK-based small and medium sized businesses, targeting a net of Triple Point fees return of 4.0%-6.0% per annum• Generations Strategy: leasing, lending and infrastructure funding to the public sector (i.e. Local Authorities, NHS) and to large, good quality companies, targeting a net of Triple Point fees return of 1.5%-2.5% per annum

Please contact the sales team for more information.Investments can be illiquid and the value of your investment is not guaranteed.

Triple Point Estate Planning Service


www.triplepoint.co.uk


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IHT BPR


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 19 year track record of success in achieving BPR for investors.

TIME Investments TIME:Advance




OpenApril 2013

CloseN/A

BPR


TIME:Corporate Trading Companies (TIME:CTC) is our bespoke Inheritance Tax (IHT) solution for corporate investors, which boasts an impressive 19 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 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.

TIME Investments TIME:Corporate Trading Companies




OpenOctober 1996

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BPR

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

Oxford Capital Estate Planning Service


www.oxcp.com



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BPR


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Risk WarningInvesting in start-ups and early stage businesses involves risks, including illiquidity, lack of dividends, loss of investment and dilution. It should be done only as part of a diversified portfolio. Seed EIS Platform is targeted exclusively at investors who understandunderstand these risks and can make their own investment decisions. Investments can only be made by members of Seed EIS Platform on the basis of the information provided in the pitches by the companies concerned. Tax treatment depends on the individual circumstances of each client and may be subject to change in the future.

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Register free of charge at www.seedeisplatform.com. For further information, please contact us: 020 7071 3945.

Bo66y is a film that marks the 50th anniversary of England's victory in the 1966 World Cup. It uncovers the truth behind Bobby Moore, England's greatest Captain, who fought many more battles than millions witnessed on the football field.

Quvium is developing a small wearable medical device which has the power to predict an asthmatic attack before it occurs, consequently reducing A&E visits, hospitalisations, and deaths from asthma, particularly in children.

The Bottle Shop is one of the UK’s leading craft beer companies. Distributer, retailer, wholesaler and importer of bottled craft beer. With an online offering alongside retail locations in London and Canterbury.

The Recyclabox allows customers to easily recycle old Phones, Tablets, Games & DVD’s. The business has been trialling its product in a major supermarket chain and is about to roll out across the UK.

Crowdfunding for Advisers

Download - EIS Magazine - February 2016

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