Publications

This update of the Enterprise Investment Scheme (EIS) market comes out at a
turbulent time in British politics.
First, an ill-timed leadership change at the top created much uncertainty around the direction of UK politics and its implications for financial markets. Then, large parts of a controversial budget introduced by the government of Prime Minister Liz Truss had to be scrapped by Jeremy Hunt, brought in to replace Kwasi Kwarteng who had been chancellor of the exchequer for only 38 days.
As we go to press, the PM has lost two key ministers, shed the confidence of almost all her own MPs, and is under mounting pressure to step down.
Amid the political chaos, however, Treasury has reaffirmed its commitment to
supporting EIS, which is poised to benefit from the extension of the sunset clause beyond 2025.

UPDATE: just hours after publication, Liz Truss resigned as prime minister, saying she would step down after a week-long emergency contest to find her successor.

As this report comes out, inflation is out of control and investors are running scared. Coming on the heels of Brexit and the Covid-19 pandemic, the Russia-Ukraine war has dealt a further blow to the financial markets.
Britain is in the grip of the worst cost-of-living crisis since the 1950s, according to data from the Office for National Statistics.
Yet, this market analysis of the Venture Capital Trust (VCT) market provides an unemotional perspective that shuns panic and frenzied investment decisions. Our unruffled outlook is inspired by knowledge of history, time-tested market behaviour and investor psychology.
During the previous downturn in 2020, the VCT sector proved its resilience despite the challenges of the Covid-19 pandemic. All indications are VCTs will again weather this crisis as the small business sector leads the way to Britain’s economic recovery.

Venture Capital Trusts (VCTs) are government-sanctioned, tax-advantaged, closed ended, patient capital generators with SME investee targets and high growth ambitions. That makes them very interesting tools for tax planners, investors and economists (whether in government or not), plotting their own wealth futures and that of the UK in general. In times of political and financial uncertainty, with recession in the offing, backing the new and unproven is probably not on your list of client recommendations, but that’s exactly when the Treasury needs it – to help drive job creation, GDP and tax revenue. The quid pro quo is 30% upfront income tax relief, tax-free growth and tax-free dividends. But the rules and restrictions can be complex and they can shift. So, this guide is intended to help advisers to get a better understanding of the current practicalities and technicalities, where pitfalls lie, and when VCT could work for your clients.

Even though it has been taking place since the advent of ownership, passing wealth down through the generations comes with complexities and caveats, expectations and anxieties. The timing, access, control and amounts involved are crucial elements of this transitional process and there are probably as many combinations of those as there are donors and beneficiaries. This can be a crucial area for financial planners to add value to the service they offer clients and there is a myriad of planning options to help clients achieve the outcomes they want either pre or post death. But, to avoid unintended consequences and build the best solutions generally requires a strong knowledge of the full range of arrangements available and a good appreciation of their devilish details. This guide is intended to help professionals involved in this great wealth transfer get a better understanding of what can be achieved, and where pitfalls lie, when certain planning routes are taken.

You can claim up to 2 hours CPD for reading the guide and it is free to access here.

This industry analysis of the Alternative Investment Market (AIM) comes out amid a spate of unwelcome records recently set in the UK economy.
Inflation has jumped to a 40-year high of 9%. The Bank of England has raised interest rates to its highest level since 2009. And the war in Ukraine has triggered a global food and energy crisis, exacerbated by existing supply-chain disruptions, that is hitting millions of households across the UK.
Given the scale of funding required to help businesses survive the current crisis, which comes on top of the Covid-19 pandemic, London’s junior market is more important than ever. As this report makes clear, AIM remains fundamental to the UK’s economic recovery.
AIM Industry Update June 2022 offers data, insights and analysis of a resilient market that has emerged victorious from one crisis and is geared up to take on another.

You can claim up to 2 hours CPD for reading the Update and it is free to access here.

There’s no denying that there has been a tectonic shift in attitudes in the last couple of years and, in some areas, received wisdom has been swept away when necessity required it. Covid-19 has, of course, been the driver and it has left a legacy by pricking the collective conscience where health and wealth inequalities are concerned and lifting the veil on how mass collaboration really can enact real
and rapid change when there are no other options. This has certainly helped to push up public awareness of environmental issues and brought with it the inextricably linked social and governance concerns that form the ESG triumvirate. The urgent and costly imperative for huge changes in the way we live to address climate change and investor pressure have made this an agenda financial advisers simply cannot ignore, and in fact, should be embracing. This guide gives them the ‘why’ and ‘how’, with a particular focus on how that looks in tax-advantaged investments, with practical tips, case studies, regulatory and due diligence pointers.

You can claim up to 4 hours CPD for reading the guide and it is free to access here.

This industry update of the Enterprise Investment Scheme (EIS) comes out as Russia’s war in Ukraine is taking a dramatic toll on the world economy, causing disruptions to global food, energy, and financial markets.
Amid the turmoil, investors must avoid knee-jerk reactions. Riding out the tough times would require a well-diversified portfolio as a key component of a long-term investing strategy.
EIS investment fits the bill. It provides valuable opportunities for planning efficiency while offering generous tax benefits in all weathers.
Thirty years old, EIS has come of age. This report showcases a wiser, stronger and Covid battle-hardened industry that is poised to surmount the current crisis as it has many others in the past.
Remember to claim up to 2 hours CPD after going through the highly readable report.

The April 2022 Business Relief Industry Update explores today’s most important and emerging trends in the context for Business Relief (BR), including the surge of inheritance tax receipts as reflected in HMRC statistics and the crucial issue of lasting power of attorney (LPA).
The Covid-19 pandemic has caused a significant deterioration in public finances, prompting calls for a more robust inheritance levy. Meanwhile, the confluence of high inflation, rising interest rates, and Russia’s invasion of Ukraine has increased pressure on savings, wealth and inheritance.
The BR scheme is more important than ever, in an era when inheritance tax is no longer the scourge of the super-wealthy, with more and more hardworking families ensnared by ‘the most hated tax’.

Remember to claim up to 2 hours CPD after going through the highly readable report.

Russia’s invasion of Ukraine spells fresh volatility for stock markets. Amid growing uncertainty about a crisis that could send global markets into a free fall, investors might be tempted to overreact and sell their investments.
But knowledge is the antidote to fear. This quarterly update of the Alternative Investment Market (AIM) attempts to cut through the market noise and deliver the facts, based on research, experience, and history.
The picture that emerges is that of a vibrant equities market that’s more resilient than most. Looking ahead, how will the market fare in the scary new investment landscape? How can investors protect themselves? What opportunities are there in a volatile market?
The AIM Update March 2022 provides clear answers to these important questions and many more.
Remember to claim up to 2 hours CPD after going through the highly readable report.

Our Adivser’s Guide to the Enterprise Investment Scheme is a valuable reference resource for financial advisers and paraplanners on the practical and technical aspects of using the EIS. The scheme, which is heading towards its thirtieth birthday, can combine high growth potential with generous income and capital gains tax reliefs, while offering a vital funding mechanism to the UK’s most innovative SMEs. These are the companies that will be fundamental to the chancellor’s, “future economy built on a new culture of enterprise.” But for investors, a thorough understanding of the current rules, regulations and functional nuances is key to the best outcomes. The guide’s case studies, flowcharts, tables and explainers are all designed to put professionals in a position to consider the most important variables.

You can claim up to 4 hours CPD for reading the guide and it is free to access here.