Tax Efficient

This report of the Alternative Investment Market (AIM) concludes that London’s junior market has had a challenging 2022 but will recover.
After shedding around 28% of its value to its pandemic lows in March 2020, the FTSE AIM All-Share Index rose to 1,248.31 points at the end of June 2021. Now, after a difficult first half of 2022, the small-cap index has lost nearly a third of its value, making most AIM shares a bargain, especially for long-term investors.
This update of London’s junior market ultimately sees the index for small and medium size growth companies on a growth trajectory. AIM’s ambitious, fast-growing businesses will be key to Britain’s economic recovery.
You can claim up to two hours CPD for reading the Update and it is free to access here.

The government has given the Seed Enterprise Investment Scheme (SEIS) a new lease on life.
From April 2023, companies will be able to raise up to £250,000 of SEIS investment, a two-thirds increase. To enable more companies to use SEIS, the gross asset limit will be increased to £350,000 and the age limit from two to three years. To support these increases, the individual annual investor limit of £100,000 will be doubled to £200,000.
As we go to press, the government has just undertaken the third fiscal statement in as many months, against a backdrop of rising inflation and economic recession. The Autumn statement 2022 has laid out a balanced path to support the economy and return to growth.
As illustrated in this industry update of SEIS, government support for the increasingly useful tax-advantaged scheme has remained remarkably constant throughout the tumultuous period that saw three prime ministers and as many chancellors and budgets.

Momentous events in the UK continue to highlight the role of Business Relief (BR) as a valuable form of tax relief.
HM Revenue & Customs (HMRC) data has revealed that inheritance tax (IHT) brought in £557 million in September 2022. This brings the overall tax-take to £3.5 billion in the first half of the 2022/2023 tax year – a new record that far surpasses the previous high of £3.1 billion recorded in H1 2021/22, and the £2.9 billion in H2 2021/22.
IHT surpassed £6 billion in 2021/22 for the first time ever with the current tax year now set to post consecutive all-time high tax-takes. The backdrop of this meteoric rise in IHT receipts are dramatic political events that have seen three Prime Ministers at No. 10 in less than two months.
As we go to press, Jeremy Hunt, reappointed a chancellor by new Prime Minister Rishi Sunak, has delayed the announcement of the highly-anticipated medium-term fiscal plan to repair the country’s public finances.

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.