Enterprise Investment Schemes in the South East
There are currently some compelling investment opportunities available in the EIS area of financial planning, including:
• The opportunity to invest into high quality, food focused gastro pubs in and around the South East. The management team have a strong track record of running this type of establishment and are in discussions about an excellent venue in W1, London. Freehold property will form a substantial part of the company’s balance sheet, providing a high level of asset focus within the trading entity. This investment targets returns of £1.10p – £1.25p after the tax relief has been applied.
• The opportunity to invest into a portfolio of pre-identified asset backed companies in the waste, recycling and environmental sectors. This EIS invests into recycling companies who mainly have local authority contracts in place to provide composting or waste water treatment services. The industry is underpinned by government legislation forcing local councils to increase the use of recycling facilities. This investment provides a predictable upside potential and targets a minimum return of £1.20 over a 4-5 year period. Its exit in 2016 provided investors with a return of £1.15 per £1 invested, excluding tax relief.
The above EIS’ are both asset backed, which is our preferred option for our clients, and target an exit shortly after the minimum holding period, at between 4 and 5 years.
As well as seeking to provide their investors with a very attractive return, there are incentives for investing in EIS from the government, which come in the form of various tax reliefs, as highlighted in our previous post. Please click here to read this.
As a summary these are:
• 30% upfront income tax relief
• 100% inheritance tax exemption after 2 years
• 100% capital gains tax deferral
• Offset capital losses up to 45%
• Tax free growth
Please do let me know if you would like to discuss these, and other opportunities with us. As the tax year progresses, the options for investing in EIS tend to contract, as companies are only able to raise a set amount of capital in this way and they reach capacity.