The significant potential of the Enterprise Investment Scheme (EIS) was discussed by eight of the top providers of EIS investment services at the London Stock Exchange on 19 November, which also saw the launch of Intelligent Partnership’s first Adviser’s Guide to EIS.
Venture Capital Trusts (VCTs) raised £731 million in 2018/19 – the second-highest amount since their inception, meaning they continue to be a vital source of tax-efficient investment into UK small businesses. With such strong interest, we believe the time is ripe to provide advisers with a clear and insightful explanation of the rules and operating structures surrounding VCTs.
Recent government changes mean that there is now a greater focus on higher-risk investments, and as interest in the market continues to rise, understanding VCTs is more important than ever.
This Guide takes a practical, impartial look at VCTs to give advisers and paraplanners the confidence to discuss the potential benefits and pitfalls of this market with their clients.
Andrew Aldridge shares the progress that Deepbridge has made over the past year, showing good growth in a challenging economic climate. He also considers the government’s knowledge-intensive fund and looks into the potential offered by Deepbridge’s SEIS funds, helping to provide a strong potential incubator for EIS investment.
2019 marks the 25th anniversary of the Enterprise Investment Scheme (EIS), and a number of legislative changes over the past few years mean it is quite a different beast to when it started a quarter of a century ago. While its aim of utilising tax-efficient investments to support small UK businesses remains undiminished, the rules around this have been given an overhaul.
We, therefore, think the time is right to provide an update on those changes and offer financial advisers and paraplanners the tools to confidently and successfully navigate this market for their clients.
This Guide offers an impartial look at the nuts and bolts of investing in the EIS, offering practical support for advisers considering this market for their clients.
The Enterprise Investment Scheme (EIS) has gone through a number of changes in recent years but continues to prove its resilience and importance to UK small businesses. With the recent risk to capital change taking it back to its roots, there is a high degree of optimism within the market that it will continue to flourish in the coming years.
Our sixth edition of the Enterprise Investment Scheme Industry Report reflects this positivity in the market, with our adviser survey, roundtable discussion and industry debate with the managers all suggesting that the market has been changed for the better and EIS will continue to grow.
This report examines the market in more detail, as well as providing and analysing the latest government data and statistics from the MICAP platform. It also takes a closer look at the future of knowledge-intensive companies and the government’s knowledge-intensive fund.
Sam Barton delves into the last 12 months of the AIM market and explains Close Brothers’ approach to some of its investment decisions. He also refers to the continued growing demand for Business Relief opportunities on the AIM market, and suggests that a focus on good quality businesses can help mitigate general market headwinds.
Henny Dovland says there is a growing demand for a conversation around intergenerational wealth transfer, with Business Relief a core part of that. She also explains TIME’s “fundamentally different” approach to AIM portfolio creation, which she says is purely based on the fundamentals and screening process that is applied to the model.
The Alternative Investment Market (AIM) continues to offer strong opportunities for investments into growth businesses.Six of the top providers of tax efficient AIM-focused products showcased their offerings and discussed some of the big issues in the sector at Intelligent Partnership’s AIM Showcase 2019 hosted by the London Stock Exchange on 10 September.
As the government’s IHT take continues to increase year on year, the importance of Business Relief (BR) as an estate planning method has certainly not diminished. The OTS’ second report in its review of IHT recognised the importance BR in supporting family-owned businesses, and growth investment. While it has recommended addressing some inconsistencies in the rules governing BR qualification, it has also suggested changes that would open more trades and structures to BR eligiblity.
This is a sector that offers advisers additional tools in their estate planning arsenal but it’s important to stay up to date with developments and create and leverage expertise to obtain the best client outcomes.
Shane Gallwey highlights some of the themes in the market at the moment, including the ongoing impact that Brexit uncertainty is having on AIM company valuations, as well as the growing role of ethical considerations of investors. He also discusses Guinness Asset Management’s response to the volatility seen on AIM.