Discover why the changes that were announced in the November Budget have proved positive for VCTs, as they remain a valuable source of funding for businesses, and retain their attractions for investors. Plus find out how you can receive a 1% discount off Puma’s latest limited-life VCT offering
Throughout the second half of 2017, rumours abounded sounding the death-knell for VCTs and EIS. Many worried that, following the Government’s so-called Patient Capital Review, the Chancellor’s November Budget would emasculate these schemes by reducing their attractive tax reliefs and/or paring-back the universe of companies that qualify for their investment.
In fact, the changes that were announced in the Budget and which are now coming into force are largely positive and should be welcomed by investors, managers and entrepreneurs alike.
The tax reliefs were actually enhanced rather than reduced. Investors in VCTs and EIS continue to receive a 30% up-front tax break, tax-free capital gains and, (in the case of VCTs) tax-free dividends. An individual can now claim up to £660,000 of up-front income tax relief per annum by investing up to £2 million into EIS qualifying companies, (so long as £1 million is invested in ‘Knowledge Intensive Companies’) and investing £200,000 in a VCT. And VCT managers have now been given double the time to reinvest or distribute the proceeds of an exit.
Many good, solid businesses rightly qualify for investment through these schemes because they are unable to access capital from traditional sources. The introduction of the principles-based “risk to capital” condition, rather than fixating on the specific trade, sector or asset base of a company, will ensure that the right businesses continue to be able to access funds from VCTs and EIS.
It is good to see that VCTs and EIS remain a viable and valuable source of funding for smaller and growth companies, whilst continuing to retain their attraction to investors. The government has obviously had to balance competing priorities, but there is no doubt that the value of these schemes to businesses and investors has been recognised and reaffirmed.
Puma VCT 13 Offer: 1% discount off the Initial Fee
Puma Investments’ latest limited-life Puma VCT 13, is offering select advisers a 1% discount off the Initial Fee in the form of additional shares, until the 16 March 2018. You can redeem this discount by quoting the promo code ‘CISI1’ here.
Our expert Business Development Team are also here to help, and would be happy to discuss our latest VCT offering in more detail with you either by phone or by visiting your offices. Call our Business Development Team on 0207 408 4070 or visit www.pumainvestments.co.uk to find out more.
This communication is a financial promotion issued by Puma Investments in accordance with section 21 of the Financial Services and Markets Act 2000. Puma Investments is a trading name of Puma Investments Management Limited which is authorised and regulated by the FCA (FRN 590919). An investment in the service carries risk and may not be suitable for all investors. Investors should refer to the Investment Details and Client Agreement, copies of which are available on pumainvestments.co.uk. Key risks of the service include: Past performance is not a guarantee of future performance; you may lose money; tax reliefs are not guaranteed; long-term and potentially illiquid investment.
About Puma Investments
Puma Investments offers a range of tax-efficient investments with a proven track-record of delivering for our investors and the businesses we support.
We are proud to be part of Shore Capital, a wider financial services group with a 30+ year track record of excellence, a strong balance sheet and a 160 strong multi-disciplinary team across five offices.
To date we have raised over £357 million since 2005 and, more importantly, over £113 million has been paid in dividends to shareholders. We focus on 3 core activities: Growth Capital for UK SMEs, Property Finance and Listed Equities.
Please refer to our website at www.pumainvestments.co.uk or call 020 7408 4070 if you are interested in any of our investment opportunities.
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