69
Term
Description
AIFMD
Alternative Investment Fund Managers Directive. Published in the Official Journal of the European Union
on 1 July 2011 and was transposed into UK law on 22 July 2013. Covers the management, administration
and marketing of alternative investment funds (AIFs). Its focus is on regulating the Alternative
Investment Fund Manager (AIFM) rather than the AIF.
AIM
The Alternative Investment Market, is a sub-market of the London Stock Exchange (LSE) for smaller
growing companies. It has a more flexible regulatory system than the main listings market to allow
smaller companies to list shares. Businesses include early stage, venture capital backed and more
established companies seeking access to growth capital.
CGT
Capital Gains Tax. This is a tax on the gain or profit made when selling or giving away an asset. It applies
to assets that you own, such as shares or property. The individual CGT allowance for 2014/15 is £11,000.
FCA
Financial Conduct Authority. Replaced the FSA on 1st April 2013 and took over the regulation of the
financial services industry in the UK. Its aim is to protect consumers, promote competition and enforce
standards.
FSA
Financial Services Authority. Up to 31st March 2013 regulated the financial services industry in the
UK, including financial services markets, exchanges and firms. Set and enforced standards for FSA
authorised firms to comply with.
EISA
The EIS Association is an independent, not-for-profit organisation, which exists to assist in the flow
of capital and resource available to British small to medium-sized enterprises through the Enterprise
Investment Scheme.
EIS
Enterprise Investment Scheme. Government supported initiative designed to help smaller higher-risk
trading companies raise finance by offering a range of tax reliefs to investors who purchase new shares
in those companies.
HMRC
HM Revenue and Customs. They are the UK’s tax authority, responsible for making sure that money is
available to fund the UK’s public services and for helping families and individuals with financial support.
Responsible for Income Tax, Corporation Tax, Capital Gains Tax, Inheritance Tax, Stamp, Land and
Petroleum Taxes among others.
IHT
Inheritance Tax. This is a tax due on the value of your estate at death, including any assets held in trust
and gifts made within 7 years of death. The current IHT threshold (2014/15) is £325,000, been frozen
until 2019. Tax is payable at 40% on any amount above this nil rate threshold.
IM
Investment Memorandum, Offering Memorandum (OM) or Private Placement Memorandum (PPM).
A legal document stating the objectives, risks and terms of a private investment. It should provide
buyers with information on the offering and protect sellers from the liability associated with selling
unregistered securities.
NMPI
Non-Mainstream Pooled Investment. Term coined by the FCA in PS13/03 to include UCIS and other forms
of Pooled Investments such as QIS, certain SPVs which have similar attributes and Traded Life Policy
Investments.
PLUS
PLUS Markets Group. London based electronic stock exchange for small companies and a rival to AIM.
Acquired by ICAP in 2012 and re-branded as ICAP Securities and Derivatives Exchange (ISDX). Providing
cash trading, listing, derivatives and technology services.
PS13/03
Restrictions on the retail distribution of unregulated collective investment schemes and close
substitutes: Feedback to CP12/19 including final rules. Policy statement issued by the FCA in June 2013
covering UCIS and close substitutes.
Section 42 of the Finance
(No. 2) Act 1992
Allowed expenditure on the production or acquisition of British films to be matched against income
from the film or written off over three years.
Section 48 of the Finance
(No. 2) Act 1997
Allowed expenditure on low budget British films to be written off immediately.
SEIS
Seed Enterprise Investment Scheme. Aims to help small, early-stage companies raise finance by offering
tax reliefs to individual investors who purchase new shares in those companies. It complements the EIS
and focuses on very early stage companies, offering tax relief at a higher rate than the EIS.
UCIS
Unregulated Collective Investment Scheme. An investment structure which pools investors’ funds
in order to invest directly in underlying companies or assets. The marketing of UCIS is regulated and
subject to complex rules, including restrictions imposed by s. 238 of the Financial Services and Markets
Act 2000 and COBS 4.12.
VCT
Venture Capital Trust. Scheme started on 6 April 1995 and is designed to encourage individuals to invest
indirectly in small higher-risk trading companies whose shares are not listed on a recognised stock
exchange. VCTs are traded on a regulated market and tax reliefs are available to individuals who invest.
GLOSSARY OF TERMS
