eis magazine - february 2016

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Read the digital edition of EIS Magazine. For more information and all the latest news, please visit: http://www.eismagazine.com/

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  • SEIS EIS VCT SITR IHT BPR

    The IFA Guide To Tax Efficient Investing

    TAKE A NEW LOOK AT 2016

    FEBRUARY 2016 ISSUE 06

    www.eismagazine.com

  • FULL PAGE ADVERT

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

    angloscientific

    Anglo Scientific EIS This is Innvotecs 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 Clubs network ensures that opportunities are sourced from many of the UKs 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: info@innvotec.co.uk Web: www.innvotec.co.uk

    Issued and approved by Innvotec Limited, Business Design Centre, Suite 310, 52 Upper Street, Islington, London, N1 0QH.

    Innvotec Limited is a registered company in England & Wales. Registration Number: 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.com2016. All rights reserved.

    Telephone: +44 (0)117 9532 003

    Editor: Michael Wilson, Editor-In-Chief editor@ifamagazine.com

    City Editor: Neil Martin neil.martin@ifamagazine.com

    Commissioning Editor: Michelle McGagh

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

    Design: Fanatic Designwww.fanaticdesign.co.uk

    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

    Editors 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 groups 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 whats 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.Im 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 theres no way their pension pots will ever hit seven figures.

    They are, of course, wrong. Inflation and investment returns being what they are, theres 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 years 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 were proposing in these pages will prove a better way of heading off the inevitable. The increased level of EIS and SEIS schemes were 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 Decem