EIS Magazine Issue 1

Supported by
www.eismagazine.com
JANUARY/FEBRUARY 2015
ISSUE 01
The IFA Gu i d e t o Ta x Eff i ci e n t I n ve s t i n g
GREEN
LIGHT
MOVING TAX EFFICIENT
INVESTING FORWARD
OVER
Open Offers
SEIS
TAX AND
STRATEGY
EIS
VCT
OEIC
IHT
INVESTING IN
LEADING EDGE
TECHNOLOGY
BPR
4.
Welcome
A new chapter starts here. Michael Wilson explains why we

started EIS Magazine, & what we hope Advisers can get from it.
EIS Magazine is published by
IFA Magazine Publications Limited,

The Old Wheelwrights, Ham, Berkley,
Gloucestershire GL13 9QH
Full subscription details and eligibility criteria are
available at www.eismagazine.com
2015. All rights reserved.
6.
The View from EISA
6.
The EIS Tolley Diploma
8.
News In Brief
Sarah Wadham, Director General of the EISA, on why 2015

is going to be the year for EIS and alternative funds.
And why every Adviser ought to think about signing up for it
Our monthly round-up of news stories. Keep sending us

your news, please.
Telephone: +44 (0)117 9089 686

Editor: Michael Wilson
editor@ifamagazine.com
Publishing director: Alex Sullivan

alex.sullivan@ifamagazine.com
Design: Fanatic Design

www.fanaticdesign.co.uk
EIS Magazine is for professional advisors only.
Full subscription details and eligibility criteria are
available at www.eismagazine.com
EIS Magazine is a trademark of IFA Magazine
Publications Limited. No part of this publication may
be reproduced or stored in any printed or electronic
retrieval system wihtout prior permission. All material
has been carefully checked for accuracy, but no
responsibility can be accepted for inaccuracies,
independent research and where necesary legal advice
should be sought before acting on any information
contained in this publication.
11. The MICAP Fund Finder Portal

The power to change everything. MICAP CEO Andy Marris
presents a revolutionary new database of EIS/SEIS/VCT/BPR
investments. And it wont cost you a penny to try it out.
14. EIS and the Alternative Investment Market

Shane Gallwey, Fund Manager at the Guinness AIM EIS
2015, says the relationship goes further than you think.
18. VCT Funds - A guide

Richard Wazacz, Line Manager for VCTs at Octopus
Investments, discusses how VentureCapital Trusts work,
and how they can be used to achieve different goals.
Upcoming Events
Tax Efficient Investing for HNW Clients
A Year-End Adviser Seminar on EIS/VCT and BPR
Investments from IFA Magazine and EIS Magazine
Tuesday 24th February 2015
Hyatt Regency Hotel, Birmingham
Thursday 26th February 2015
The Capital Club, London
These extended morning seminars will explore
the possibilities for HNW investors of all types,
and will explore EIS/SEIS, VCT, BPR and SITR
investments with an impressive panel of
expert speakers.
22. Leading Edge Technology

Mercias Talon Golding looks at how EIS funds can promote
small tech companies. And how it can hold onto them after
theyve stopped being small.
26. Tax and Eligibility - The Basics
Michael Wilson presents a brief guide to the available reliefs
30. Open Offers
Our monthly listing of whats currently available for subscription.
46. Timing Your Exit
Guy Tolhurst, MD at Intelligent Finance, explains how the

best stage exits are planned long in advance. And with
plenty of curtain calls.
www.eismagazine.com January/February 2015
Welcome
Ive got this problem thats been bothering me for
weeks, so bear with me. Im trying to find out what the
opposite of the phrase Perfect Storm might be? Perfect
Calm? No, I dont think so.
Perfect Convergence? Sounds too scientific, somehow.
Perfect Circumstance? No, too vague. And the dictionarys
no help. I suppose Ill have to keep on looking.
Whatever it is, though, thats what weve got right
now. Its a convergence of totally disparate factors that
ranges from last years reduction of the lifetime pension
contributions limit and the general search for better risk
rewards, right through to a desperate shortage of bank
lending for small and early-stage companies and, finally,
on to the popular-culture focus on early-stage investment
through Dragons Den, crowdfunding and all the rest of it.
All of it gift-wrapped in a government commitment
to making alternative investments as tax-friendly and
attractive as possible. (Thus neatly sidestepping the awkward
issues about the banks reluctance to lend, but thats another
story.) Was there ever such a meeting of needs?
A Record Year
Is it any surprise that the 2014/15 tax year thats now
ending has seen EIS investment topping 1.5 billion for
the first time, or that many VCT funds look set to close well
ahead of April because of an extraordinary level of demand?
Should we be impressed that well over 1,100 brand new
companies have now obtained seed capital through the SEIS
system, and that the flow of new applications is rising by as
much as 25% a year?
Make no mistake, early stage is smart right now. And
the range of tax-effective options is growing all the
time from 2012s Seed EIS regime to last years
Social Investment Tax Relief (SITR), with more
expected in due course. Specialist tax-efficient
vehicles like Business Property Relief (BPR)
schemes are rapidly gaining popularity. There are funds for

pubs and restaurants, stage entertainment, wine, health
services. Nobody ever said early-stage had to be just
about technology.
An Information Hub
But Advisers are still feeling uncertain about these
schemes. How do the tax breaks work, they ask, and are
they safe from future government meddling? What sort of
clients should sensibly be looking at them, and what are
the time horizons? How far do an Advisers responsibilities
extend? And are there any EIS-type investments that can
mitigate client risk or offer greater flexibility?
These are the kinds of issues well be focusing on, here
at EIS Magazine. No question is too simple or too complex.
Just ask us. Take a look at our Open Offers section, which is
already proving wildly popular as a resource for Advisers.
Try your hand at the new fund comparison service from
MICAP, free of charge. And then come back to us with more
questions. EIS
Many thanks for reading EIS Magazine, and we hope you
enjoy it
With Best Wishes
Michael Wilson, Editor
At Ingenious, we aim to provide advisers and their clients with straightforward, yet innovative and
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INGENIOUS RENEWABLE ENERGY EIS

Investing in clean energy projects in the UK
INGENIOUS PATH PLUS EIS

Investing in independent feature films produced by Path
INVITATION
FINANCIAL PLANNING IDEAS BREAKFAST

Were holding a nationwide series of breakfasts in February.
To reserve your place visit ingeniousinvestments.co.uk/events
FIND OUT MORE

To find out more about our current EIS opportunities, please contact
us on 020 7319 4291 or visit ingeniousinvestments.co.uk
FULL PAGE ADVERT
This notice is for professional advisers only. Not for retail clients. Investment involves a high degree of risk. Past performance
is not a guide to future performance and may not be repeated. The value of an investment may go down as well as up and your
client may not get back the full amount invested. Ingenious Investments is a trading name of Ingenious Capital Management
Limited. Authorised and regulated by the Financial Conduct Authority. Registered in England Wales at 15 Golden Square London
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Spreading The Word

By Sarah Wadham, EIS Association Director General
It is estimated that
up to 1.5bn will be
invested into EISand
SEIS companies in the
year to April 2015
As Director General of the EIS

Association, may I extend a warm
welcome to the launch issue of
EIS Magazine.
As youll be aware, EIS and SEIS
are becoming increasingly important,
both as legitimate tax planning tools
but equally importantly as a means
of channelling much needed equity
capital into early stage and developing
UK entrepreneurial companies. It is
estimated that up to 1.5bn will be
invested into these companies in the
year to April 2015. This investment
fuels innovation and growth in
employment, and it is vital for the
growth of the wider economy.
The EISA is the trade body for the
EIS and SEIS industry. Its members are
the EIS and SEIS funds and the lawyers,
6
EIS Magazine January/February 2015
accountants and corporate financiers

who advise both the companies
seeking investment and the investors.
The EISA maintains close relationships
with the Treasury and HMRC and the
FCA to ensure that the EIS/SEIS reliefs
work effectively to support small and
growing businesses.
This summer the EISA made an
extensive submission to the Treasury/
HMRC Consultation on the working
of Tax Advantaged Venture Capital
Schemes which will form the basis for
negotiations with the European Union.
Other major achievements of the EISA
include encouraging the raising of the
investment limits for EIS companies in
2012, which has allowed investment
into larger companies.
Building A Confident Future

This has encouraged investment
from new investors who might have
considered earlier stage companies
as too high risk. And yet EIS and SEIS
are often still perceived as complex,
meaning that many IFAs have hesitated
to recommend them to their clients.
In recognition of this, the EISA in
conjunction with Tolley Exam Training,
have launched the EIS Diploma, an
online course with an accredited final
exam. Several EIS Fund providers will
be holding Diploma workshops for
their IFA contacts.
But were not stopping there. In
addition, to encourage and recognise
excellence and professionalism in the
industry, the EISA has re-launched
the highly prized EIS/SEIS Awards.
This year these will be judged by
independent outside judges against set
criteria. The EISA has also launched
Green Shoots for younger professionals
in the industry and is encouraging
greater links with the entrepreneurial
companies seeking investment.
For more details on the EISA, the Tax
Reliefs and the Diploma, please visit
the EISA website: www.eisa.org.uk or
email: info@eisa.org.uk
With very best wishes to EIS
Magazine, and to all Advisers and
Providers
Sarah J. Wadham Director General
EIS Diploma
By Mary Rodgers, EISA Membership Manager
Given that we are seeing increasing
levels of interest and investment into
EIS qualifying companies and funds,
it is vital that financial advisers and
wealth managers are fully aware
of how the Enterprise Investment
Scheme operates, including the ways to
invest in EIS companies and funds and
which investors these investments are
appropriate for.
As such, Tolley Exam Training,
in conjunction with the Enterprise
Investment Scheme Association
(EISA) have launched the Enterprise
Investment Scheme Diploma, a
comprehensive, self-study diploma
covering all aspects of EIS, including
the tax implications, regulatory aspects
and the wider funds and schemes
landscape. It demonstrates effective
ways to utilise investments efficiently
to maximise the benefits in an easy to
understand manner.
Anyone studying for the EIS Diploma with Tolley Exam Training will receive:
A comprehensive study manual with useful summaries to aid understanding

and practice examples, many of which are in the multiple choice format that
will be seen in the final Diploma exam
Access to the Tolley Online Academy, also available as an app, where you can
access all study material either online or offline, and ask queries on the
Student Forums
Full support from the experienced tutor team
Access to the Tolley Online Exam Centre for all the Diploma and mock exams.
The mock is representative of the final exam testing environment providing
ample familiarity and practice to aid a first time pass
A Diploma certificate on passing, accredited by the EISA
15 hours of CPD
The final Diploma exam is a 60 minute online test and covers the full syllabus.
There is also a full syllabus mock in preparation for the final Diploma exam. Both
are multiple choice exams available from the Tolley Online Exam Centre so have
complete flexibility to be sat at any time.
For more information on studying for the EIS Diploma please visit tolley.co.uk/eisdiploma,
email examtraining@lexisnexis.co.uk or call 020 3364 4500
BE FIRST
OVER THE
LINE
News In Brief
Round up of the latest industry news
LAUNCHED 2012
83.7m
1,120 small
companies secured
funding
seed funding raised
BY JANUARY 2015
SEIS Approvals
Into Four Figures
The Seed Enterprise Investment
Scheme (SEIS), which launched only
in 2012, has already logged up its
first four-figure result, according
to research by Radius Equity. 1,120
small companies had secured funding
by January 2015, it said, and a total
of 83.7 million in seed funding had
been raised. But, it added, there is
still significant potential for take-up
to grow.
Favourite sectors for SEIS
investment include information and
computer technology, Radius reports:

ICT accounts for fully 32% of the
funds invested so far under SEIS
the highest of any sector - with the
number of applicants having risen
26% last year. Business services
accounted for 22% of the total;
distribution, restaurants and catering
for 14%; recreational activities for
13%; manufacturing for 8%; and
energy and water supply for 3.5%.
Hot Cakes
Many VCTs are currently on track
to close sooner than originally
anticipated because they are well
ahead of their fundraising targets,
according to analysis from investment
provider Clubfinance. By mid-January,
it said, the Maven Income & Growth
4 had already closed while the Maven
Income & Growth VCT had attained
70% of its quota. Elderstreet VCT had
hit 80% and British Smaller Companies
VCT and VCT2 had both achieved 40%.
Things were also moving smartly
among Alternative Investment Market
VCTs, where the Hargreave Hale AIM
VCTs 1 and 2 had both passed the
41% mark. Octopus AIM VCT 1 and
2 had been quoted at 65% and 55%
respectively, while Unicorn AIM VCT
had reached 64% of its target.
Mark Wignall at Mobeus Equity
Partners had told the FT in December
of his concern about the danger of a
supply and demand mismatch, caused,
he says, by greater risk tolerance, poor
returns from alternatives, and not
least - clampdowns on unapproved tax
avoidance schemes. Quite so.
Alternative Energy: Changes in April

A reminder that changes to the
investment rules in April will mean
that VCTs, EIS, SEIS will no longer be
able to invest in renewable energy
schemes, including anaerobic digestion
and hydroelectric power, with effect
from 6th April. Effectively, this creates
a window of opportunity for investors
which will close at the end of the tax year.
In practice, EIS, SEIS and VCT
companies have been barred since
last July from investing in solar
and wind schemes, because they
8
have been excluded from benefiting

from the Renewables Obligation
Certificates (Rocs) and the Renewable
Heat Incentive (RHI) scheme. The
Treasurys extension of the ban into
areas such as anaerobic digestion and
hydroelectric power is the next step.
But the guidance is those companies
which themselves dont receive the
benefits from feed-in tariffs, Rocs, RHI
etc will remain eligible for funding.
News In Brief
Election Nightmare
Whats on advisers minds this
year? Not the economy, to judge by
responses to a survey of attendees at
Octopus Investments annual event in
London on 21st January. 67% of those
polled said that political uncertainty
around the general election in May
is keeping them more awake than
economic uncertainty or a possible
slowdown in recovery and
global growth.
94% of the respondents confirmed
that they were seeing increased
demand for VCTs and EIS, Octopus
says, and 78% felt that this was
largely due to VCTs and EIS being
more widely recognised tax-efficient
investment solutions. One in three
added that they feel the recent
pension reforms have
created an opportunity
for more people
to think about
alternative taxefficient investment
solutions to support
their retirement.
Digitising the Process

One of the more widely overlooked
highlights of Chancellor George
Osbornes Autumn Statement was a
commitment to set up a new online
system, by 2016 at the latest, which he
said will allow investors easier access to
EIS, SEIS and SITR. A similar format for
VCTs is also planned, the Chancellor said.
Essentially, the new system will
allow investors to register digitally.
And in principle, that should be a
good thing for early-stage companies
seeking easy penetration. But
inevitably, there are those who worry
that the new system will enhance
HMRCs ability to scrutinise taxefficient vehicles, by making it easier
for HMRC to discover which investors
are using such schemes.
Some have expressed fears that it
may usher in a sharper investigative
line on tax avoidance schemes.
Conversely, the changes ought to speed
up the very slow process of receiving
HMRC approval for a tax-efficient
scheme. Heres hoping.
Green Shoots
Getting the EIS message out to
advisers isnt enough for EISA Director
General Sarah Wadham, it seems. The
organisation is also extending its reach
into the younger end of the business
by launching a junior branch entitled
Green Shoots, which it says is designed
to provide young professionals
in the industry with the chance to
independently develop their own
networks, interest and awareness of
the world of alternative investments.
The aim of the enterprise, EISA
says, is to create a space where
our members can meet and interact
with early-stage companies, keep up
to date on industry trends, as well
as build early and lasting business
relationships with each other.

We do this through holding evening
networking events with guest
speakers, sending out regular updates
and hosting bi-annual technical
seminars.
Membership, which costs 100
a year, provides access to Green
Shoots evening networking events;
a bi-annual technical seminar (CPD
accredited); a listing on the Green
Shoots member page at the EISA
website; the chance to win a ticket for
the prestigious annual EISA Awards
held at the House of Lords; and, not
least, the ability to enter for the Best
Innovator/Newcomer/Rising Star in
EIS category at the EISA awards.
Time for Training

Its not too late to beef up your
knowledge levels, you know. The next
three months will bring a series of
important opportunities for advisers
to hone their EIS, SEIS, VCT, BPR and
SITR skills many of them in the
comfort of luxurious surroundings
with food, drink and a chance for
essential networking. What better way
to pick up some CPD points?
IFA Magazine Events

Firstly, there are two EIS and Tax
Planning events from IFA Magazine,
which also owns EIS Magazine. The
first kicks off on 24th February 2015 at
Birmingham, and the second on 26th
February in London.
Both of these extended morning
seminars will explore the possibilities
for HNW investors of all types, and will
explore EIS/SEIS, VCT, BPR and SITR
investments with an impressive panel
of expert speakers. We will also be
demonstrating MICAPs radically new
online service, as described on Page
11 which allows advisers to examine,
compare, assess and recommend to
clients from a brand new comparison
portal covering
120 funds.
The two seminars are CPD

qualifying, of course, and they are free
to attendees. Places are limited, so
do contact us as soon as possible to
reserve your seats. Details at http://
tinyurl.com/no5dogd, or from the IFA
Magazine website at
www.ifamagazine.com.
Intelligent Partnership EIS
Masterclass
Guy Tolhurst, this months
contributor on tax exit strategies,
is running a four-hour seminar and
workshop in London on 5th March on
the subject of EIS investment. Details
can be found on Page 46. And as youll
see, readers of EIS Magazine qualify
for a reduced attendance fee of 65,
compared with the standard 95 fee.
Details from
http://tinyurl.com/lpwjtsc.
The EIS Tolley Diploma
As featured on Page, EISA has
teamed up with Tolley and with
Kuber Ventures to present the EIS
Tolley Diploma, an accessible online
study course which leads to an EISAaccredited diploma, a comprehensive
study manual, access to the Tolley
Online Academy and 15 hours
of CPD. Details from tolley.co.uk/
eisdiploma, or email examtraining@
lexisnexis.co.uk. Tel: 020 3364 4500
Compatibility: Requires IOS 6.0 or later. Compatible with iPhone, iPad, and iPod touch. This app is optimized for iPhone 5. Available on Android.
Twenty Four Seven

IFA Magazine, Britains premier online
portal and print publication for
financial advisers, has launched its ver y
own app designed to help you stay
up to date with all the latest financial
and economic news as it happens.
Main
Features:
Reviews
Features
Funds
Market and Economics
Trading Expert
FCA
Compliance
Jobs
10
Time is Money...
EIS Magazine talks to Andy Marris, CEO of MICAP
The increased interest

in tax-efficient
investments presents a
significant opportunity
for advisers, its not
without it challenges
though - not least
getting a whole of
market view. MICAP
addresses this need
head on, saving
advisers considerable
time and money
Cometh the time, cometh the

product. If ever there were a
moment for a properly comparative
online system that could enable
advisers to compare and assess
the growing EIS, SEIS, VCT and BPR
marketplace, this must surely be it.
The very rapid growth of investment
alternatives over the last few years
is enabling clients and their advisers
to extend their engagement with
risk investments in a way that would
hardly have been thinkable five years
ago. The government is right behind it.
Yet the difficulty of obtaining suitable
material for due diligence has been
holding many advisers back fearful
of long-term consequences if they
turn out to have made the wrong
recommendations.
Surely it cant be that impossible
to set up a one-stop portal that

would enable advisers to compare
every available EIS, SEIS and VCT,
Morningstar-style? Thats what Andy
Marris, CEO of London-based MI
Capital Research Ltd, thought when he
set up MICAP in September 2013. Just
over a year down the line, and a lot
of development time later, the MICAP
Fund Finder has arrived.
My own research showed that in this
rapidly growing market, advisers lack
three things, says Marris: Product
knowledge, an up to date all-of-market
view and time to conduct their due
diligence. So any system which can give
them access to this information from
anywhere must not only help them
comply but add significant value to
their business.
A Meeting of Needs
The point is that, as Marris puts it,
advisers are stuck in an inefficient
market which makes it difficult for
clients and their advisers to connect
effectively with suppliers - or even
to identify the differences between
their various offerings at all. And that
inefficiency, in turn, can easily become
a daunting bottleneck between
advisers and the regulations that they
need to adhere to.
On the one hand, he says, there
are lots of new and exciting offers
coming onto the marketplace and a lot
of disenchanted investors looking for
alternatives to the existing
mainstream options.
And on the other, the traditional
appeal of pensions and other more
aggressive structures is no longer so
11
Time is Money
An IFA who didnt at

least consider EIS and
VCT propositions could
find himself being
asked why not.
strong as it was. Changes to the

lifetime contribution limit, and a less
tolerant HMRC in respect of highly
structured schemes, are literally driving
higher earners to seek out new ground
that can help them optimise the tax
efficiency of their investments.
To complete the picture, of course,
are hundreds of small and earlystage companies which are becoming
disenchanted with the growing
difficulty they face in raising funding
from banks, some of which are still
unwilling to lend. A situation which
has been clearly understood by the
Government and by HMRC - both of
which are throwing their full weight
behind the EIS, SEIS and VCT concepts.
And yet the task of connecting
12
EIS Magazine January/Febuary 2015
investors with suitable EIS investment

propositions has not been easy
until recently. The wide field of EIS
providers has always been somewhat
fragmented, and even today there are
relatively few that are big enough to have
made it onto many advisers radars.
More importantly, theres a serious
lack of standardised data about the
various investments available, and
assessing and comparing risk is still
seen by many advisers as a daunting
and time-consuming challenge that puts
a great many off the idea altogether.
Plugging the Information Gap
Not that being put off is a good
enough excuse for not doing anything
about EIS investments, Marris says.
Post-RDR, independent advisers are
required to consider all of the market
when making recommendations and
the FCA has made it perfectly clear that
it considers EIS products to be fully
mainstream. An IFA who didnt at least
consider EIS and VCT propositions
could find himself being asked
why not.
Thats a particular horror for
some advisers, because the FCA and
compliance also requires them to
document their client advice in detail,
and to be able to justify in retrospect
why they plumped for one option or
the other. Without a standardised
platform on which to compare and
process these diverse and often small-
scale funds (many issues are raising

less than 10 million at a time), the
implications for due diligence and
record-keeping appear sobering. A
significant point, given that the rising
cost of PII insurance is a particularly
timely reflection of the mounting
pressures that advisers face.
Lets remember too that the time
savings that can be achieved are
considerable. Administration is
always one of the largest drains on
profitability, Marris says, and being
able to access uniformly-organised
information across a range of products
can make a serious difference. Time is
money, after all.
Its Not A New Idea.
Hence the decision, Marris says,
to put tax efficient investments on
the same sort of comparison portal
that any consumer buying insurance
or cars or holidays is already taking
for granted. A sort of GoCompare.
com that enables clients and their
advisers to achieve quick and
incisive comparisons of investment
proposition, risk, sector, investment
horizon and so forth.
All of it backed up by a unified
system of Morningstar-like rating and
risk assessment which ought to enable
advisers to whittle down the options
in a very time-efficient manner. As
standard and alongside all key data
in an investment product, MICAP will
Time is Money
assess and score the intrinsic risks,

such that the adviser can quickly
see MICAPs view of where the risk
impacts are.
The more in-depth reviews are
based on detailed assessments by
MICAPs own specialist team. There
are dozens of online tools designed
to make life easier - from being able
to download product brochures
and application forms, to creating
personalised date stamped printouts to record the advice process and
from sorting, filtering and comparing
products to building and saving
bespoke portfolios and contacting the
promoters/managers directly. Theres
also scope on the website for a user to
record his own ratings and favourites for
future reference.
120 Funds at the Click of a Mouse

Thats only a small part of the
service, obviously. The growing list of
investment schemes currently listed
on MICAPs portal can be sorted at
the click of a mouse according to their
managers, their promoters, their offer
type (EIS, VCT, SEIS, BPR etc), their
launch and close dates, and of course
their fundraising targets. Information
about any investor restrictions (UCIS
etc), sector and fund structure are all
on tap in a fully comparable manner.
Investment schemes can then be
shortlisted and selected with another
couple of clicks. It doesnt get much
simpler than this.
Keeping Up With the Paperwork

But, for many advisers, the ability to
achieve a standardised record of the
transaction, whether its a purchase or
just a recommendation, is also key to
making the whole proposition easier
and more time-effective for advisers.
Marris says that easing the burden
of compliance and administration is
a fundamental element of the MICAP

system that should help to ensure the
utmost efficiency for users.
Finding Out More

MICAPs Fund Finder is available to
all registered users who will be able
to see a complete listing of all the
products on the Fund Finder, access
the IMs and view some of the key data,
all for free. The full data set and risk
impact assessments together with all
the tools are only available to premium
users. Premium Subscriptions start
from as little as 50pm for an IFA firm
with up to 5 users.
To find out more, please visit www.
micap.com and register for a free
account. If you would like to know
more, please contact them on info@
micap.com, mention this article and
they will arrange a WebEx demo to
show you how you can benefit when
using the MICAP Fund Finder. EIS
Data on over 120

investments a click away
13
EIS and the Alternative

Investment Market
Shane Gallwey, Fund Manager at the Guinness AIM EIS 2015
Investing in AIM shares can be a high risk activity,

with the potential for large gains but also for losses.
An EIS investment fund is a particularly effective way of
achieving a diversified portfolio, within which gains are
free of Capital Gains Tax and losses can be offset against the
clients tax bill with EIS Loss Relief.
We launched the Guinness AIM EIS 2015, a follow on
from last years Guinness AIM EIS 2014, precisely because
we recognise the opportunity that combining AIM with EIS
offers. Investing in AIM stocks also helps achieve a timely
exit after three years - something that is not always possible
when making unlisted EIS investments.
AIM is a Stock Pickers Market
A review of the AIM market shows that it is not an
investable index in itself, but rather a stock-pickers market.
Since its launch in 1996 the FTSE AIM All Share index has
fallen by 30%, against a 77% growth in the FTSE 100 over

the same period. The art of achieving gains, then, lies in
careful stock selection, not in index tracking.
Structurally, the largest sector on AIM comprises the
higher risk mining and oil exploration companies - but there
are also a considerable number of early stage technology
companies, cash shells and overseas companies. The
mining and oil exploration companies are typically not
EIS qualifying and the early stage technology companies,
cash shells and overseas companies are do not fit with
our investment approach. We favour more established
businesses, preferring a demonstrable track record, a
stable management team and visibility of profits in the
short term. AIM provides access to companies at a range of
development stages.
For the Guinness AIM EIS funds we only invest in newly
issued shares with EIS Advance Assurance from HMRC, to
ensure that they are EIS qualifying.
Some of our recent

investments include
the following:
Company
Coral Products Plc
Ergomed Plc
Software Radio Technology

Group Plc
Market Capitalisation
8m
46m
23m
Sector
General Industrials
Pharmaceuticals
Tech Hardware
Employees
110
90
47
Turnover
17.2m
15.1m
6.1m
EBITDA (pre exceptionals)
1.4m
1.8m
-1.5m
Dividend yield
3.7%
n/a
n/a
Description
Coral Products are

specialists in the design,
manufacture and supply of
injection moulded products
across a wide range of
industries.
Ergomed plc is a profitable

UK-based company,
dedicated to the provision
of specialised services to
the pharmaceutical industry
and the development of new
drugs. It operates globally
in over 40 countries.
The group is the global

leader in Automatic Identification System (AIS) based
maritime safety and security
systems.
14
EIS and the Alternative Investment Market
We have indicated an intention

to offer investors a variety of exit
routes which include a sale of
shares and return of cash proceeds
The Exit Advantage

The EIS rules state that an EIS investment must be held
for at least three years to maintain the tax reliefs, but in
practice it can take considerably longer to exit some of
these investments. Investee companies are usually private,
and therefore the shares are illiquid. This can result in
investors being trapped in an EIS investment for far longer
than they originally intended.
This is where the advantages of having a portfolio of AIMlisted shares can make a difference. We launched our first
Guinness AIM EIS fund in 2013 because we recognised the
attractions of having underlying investments quoted on an
exchange such as AIM, which provides a visible exit route.
We have indicated an intention to offer investors a variety
of exit routes which include a sale of shares and return of
cash proceeds, an in specie distribution of shares to their
preferred broking account or a continued management of
their AIM shares as an IHT-exempt portfolio.
Liquidity of AIM companies varies widely, with some
stocks frequently traded and others only trading a few
times a month. Recent changes such as the abolition of
stamp duty for AIM companies and allowing the inclusion
of AIM companies in ISAs has seen a noticeable increase
in both trading and liquidity. We have a preference for
investments where the liquidity is likely to facilitate a
straightforward market sale of the funds position.
15
EIS and the Alternative Investment Market
Claiming Tax Relief

With EIS investments, the process for claiming EIS
income tax relief or capital gains tax deferral is somewhat
elongated. First, the underlying investments need to
be made into investee companies that have already
been trading for four months. If a company has not yet
commenced trading, it cannot request EIS certificates for its
investors until it has met this requirement.
An EIS certificate is issued for each investee company.
This works well for a single company investment, but if a
client has subscribed to an EIS fund, he or she could easily
end up with a dozen or more EIS 3 certificates that need
to be completed and submitted to the revenue. To make
matters worse, these can arrive at irregular intervals over
an 18 month period - meaning that investors inevitably
misplace some of them.
HMRC has attempted to address

this issue through the introduction
of the Approved Fund structure
HMRC s Approved Fund structure which we have

adopted goes some way to addressing this issue. As an
Approved Fund, the fund manager can issue only one
EIS certificate for all the investments called an EIS 5
certificate for investors to claim relief on their total
subscription.
This greatly simplifies the administrative burden for
investors as well as the process for claiming tax relief, and
this is why we have adopted this structure for our Guinness
AIM EIS funds. It is not a perfect solution the EIS 5
certificate is only issued once 90% of subscriptions to the
fund have been invested, so investors may still need to wait
12 months or so to receive this certificate.
A recent survey of EIS investors

highlighted the high (and
sometimes opaque) fees associated
with EIS funds as a key concern
Fees and Charges
A recent survey of EIS investors highlighted the high (and
sometimes opaque) fees associated with EIS funds as a key
concern. The relatively small scale of EIS funds compared
to more mainstream investment funds, coupled with a
high administration burden, does account for some of this
expense, but there are certain things that fund managers
can do to ease this burden for investors.
One such example is charging fees to investee companies
as opposed to investors. This means that all of an investors
subscription is eligible for EIS relief, not just the portion
net of fees. We do this where possible for our other funds.
However, when investing in AIM listed companies, it is
not normally possible to charge fees to the underlying
companies as we are usually one of many subscribing
investors. For our Guinness AIM EIS funds, we have taken
an innovative approach and defer all fees other than those
to your financial advisor. This maximises the tax reliefs and
should enhance returns as more capital is deployed in the
companies. EIS
Name of EIS
Guinness AIM EIS 2015
Investment Focus
AIM-listed companies that qualify for EIS Relief
Target Size
10 million
Closing Date
6 April 2015
Target Investment Subscription
Targeting full investment of subscriptions in the 2015/16 tax year. EIS Income
Tax Relief can be claimed in the 2015/16 tax year or carried back to the
2014/15 tax year
Minimum Individual Subscription
10,000
Investment Manager
Guinness Asset Management Limited
Expected Life
up to 4 years
Regulatory
The Board of HMRC has approved Guinness AIM EIS 2015 as an approved
investment fund within the terms of section 251 of the Income Tax Act 2007.
16
An Introduction
For Advisors
By Richard Wazacz, Business Line Manager for VCTs at
Octopus Investments
These are exciting times for

the Venture Capital Trust (VCT)
industry. According to figures
published in September 2014 by
HMRC, VCT inflows hit 440 million
in the 2013-2014 tax year.
Thats the highest level since
2005/2006. More recent data from
HMRC revealed the number of
individuals claiming income tax relief
on VCT investments increased by 25
per cent year-on-year for 2012-2013,
the most up-to-date figures available.
Perhaps the recent changes to
pension rules, and the fact that the
amount individuals can pay into their
pensions (both lifetime and annual
allowances) has been on a downward
trend in recent years, is helping to
underpin support for the VCT industry.
Investors who are finding themselves
increasingly concerned about maxing
out their pension contributions, and
who therefore risk losing out on the
tax benefits, could well be considering
VCTs as a way to continue making
tax-efficient investing part of their
retirement plans. Whatever the
reasons, the evidence would suggest
that 20 years after they were first
introduced VCTs are living up to their
potential and being recognised by
investors as a maturing
investment class.
Backing Growing UK Businesses
Back in 1995, the UK government
launched VCTs with the intention
of supporting dynamic UK smaller
18
companies. A VCT is a listed company

in its own right that pools money
from its investors. Like other pooled
investments, this allows it to invest
in a range of underlying companies,
which means it spreads risk across a
number of holdings either in unquoted
companies or in companies on AIM.
At the time it was acknowledged
that, while such smaller businesses
were responsible for generating a
significant proportion of the UKs
economic growth, many struggled to
get the right type of funding needed to
grow. By introducing a number of tax
incentives designed to help encourage
those investors prepared to accept
the risks associated with investing in
smaller, unlisted companies, it was
hoped individual investors would be
willing and able to pick up where
government financial incentives for
companies left off.
And, two decades later, those initial
hopes appear to have been borne
out. If anything, in the years since the
recession, UK smaller companies have
found it increasingly difficult to obtain
bank loans and to issue debt in order
to finance their growth ambitions.
In that respect, for many companies
funding from VCTs has been a lifesaver.
According to the Association of
Investment Companies (AIC) Going
for growth paper on the VCT industry
published last year, the total assets
invested in VCT-qualifying companies
stands at 3.2 billion, and for every
pound of initial tax relief returned to
Back in 1995, the UK

government launched
VCTs with the intention
of supporting dynamic
UK smaller companies
VCT
if an investor puts
20,000 in a VCT
before the end of

the current tax
year
THEY CAN claim 6,000

off that years
income tax bill.
investors, the average VCT investee

company sees its turnover rise by
6.46. (Source: AIC: Going for growth,
June 2014)
So thats the investment case made
on behalf of the government and for
UK smaller companies, but what about
the average investor? Well it would be
hard to argue that the majority of VCT
investors are not drawn in by the tax
reliefs, which are persuasive.
Tax Incentives Associated With
VCTs
For starters, investors can receive
up to 30% income tax relief on the
amount they choose to invest in each
tax year. So, for example, if an investor
puts 20,000 in a VCT before the end
of the current tax year, they would be
able to claim 6,000 off that years
Investors can receive

up to 30% income tax
relief on the amount
they choose to invest
in each tax year
income tax bill. However, the amount
of income tax relief an investor can
claim in any single tax year is capped
at the first 200,000 invested, and
cannot exceed the amount of income
tax theyre expected to pay. After the
investment is made, and after the
investor receives their VCT share
certificate and tax certificate, they can
contact HMRC to have their tax code
adjusted, which would mean theyll
immediately start paying less tax.
Alternatively, if they invested at the
end of the tax year, they could apply for

an immediate repayment or claim tax
back through their self-assessment.
Its also worth stating that investing
in a VCT is totally separate from
investing in an individual savings
account (ISA). So, even if an investor
uses their full ISA allowance for the
current tax year, they would still be
able to contact HMRC to claim income
tax relief on a VCT investment up
to 200,000.
In addition, any dividends paid out
by the VCT are tax-free, so investors
dont have to declare them on their
tax returns or their self-assessment
forms. This is likely to be another
compelling reason behind the growth
of VCTs. While dividend payments
arent guaranteed, many VCTs have a
dividend paying target and investors
19
An Introduction for Advisors
can usually choose to take their

dividends as income, paid directly
into their bank account or reinvest the
dividends into the VCT to gain further
income tax relief.
Finally, if the VCT shares increase
in value in the time in which they are
held, theres no capital gains tax to
be paid when it comes time to sell
them. Investors should note, however,
that VCT shares should be held for a
minimum term of five years, and if
they are sold before then, the investor
will have to repay any upfront income
tax relief.
Understanding the Risks

Any potential investor who is
considering the advantages of VCTs
should be very clear about the risks
too. Regardless of the investment
strategy employed, when investing
in a VCT, capital is placed at risk. The
value of the investment could go down
as well as up, so an investor might get
back less than they invest. Smaller
companies carry significant risks and
they dont all succeed. While they do
have potential for high growth, they
20
generally have a higher failure rate

than large companies, which is why a
VCT is considered a high
risk investment.
The performance of a VCT can also
be more volatile, which means that
over time the value could fluctuate
significantly. When it is time to sell
there is a chance that the investment
will have reduced in value. There
are minimum investment limits and
VCTs certainly wont be suitable for
everyone. In addition, tax treatment
depends on personal circumstances
and tax rules may change in future. In
the case of VCTs, tax relief also relies
on the companies held maintaining
their VCT-qualifying status. With all
this in mind, any decision to invest
should always be taken after an
investor has talked to a financial
adviser about their
personal circumstances.
How are VCT Shares Bought
and Sold?
The usual way to buy shares in a
VCT is by applying to the company
managing the VCT when they have
VCTs are listed on

the London Stock
Exchange so you also
have the option of
buying second-hand
VCT shares through a
stockbroker, just like
other stocks
An Introduction for Advisors
an offer open. A financial adviser

will do this for you, but with some
companies you may be able to apply
directly. VCTs are listed on the London
Stock Exchange so you also have the
option of buying second-hand VCT
shares through a stockbroker, just like
other stocks. You will be able to take
advantage of any potential income
or growth if you buy second-hand
VCT shares but you wont be entitled
to the initial income tax relief. In
addition, even though you cant claim
any income tax relief on second-hand
shares, the investment would still
count towards the initial 200,000
ceiling for income tax purposes.
You can sell VCT shares on the
London Stock Exchange. However, the
initial income tax relief is only retained
after the shares have been held for at
least five years. Opportunities to sell
VCT shares in this way may be limited,
and because VCT shares bought on the
secondary market do not qualify for
30% income tax relief they invariably
trade at a discount to the Net Asset
Value (the combined value of the
underlying investments). Alternatively,
many VCTs buy back their own shares
and may offer you a better price.

How often this happens depends on a
number of factors, including whether
the VCT has enough funds available
and it may be unable to purchase
them at certain times of the year
(for example, closed periods around
financial reporting announcements).
If you think you may want to sell your
VCT shares in the future, you should
check whether the fund management
company offers a share buy-back
scheme, and what discount they
typically apply.
A Promising Future
So whats next for the VCT industry,
and how likely is it that such growth
can be sustained? Of course, as long
as VCTs keep pushing to enter the
investment mainstream, its likely
that new VCT managers will emerge,
some of which may not have the sort
of investment expertise required
to successfully invest in smaller
companies. It therefore makes sense
to talk to a financial adviser who can
help investors find a VCT that fits their
investment goals, whether they are
looking for tax-free income, long-term
growth potential or to preserve their

original capital.
It has been interesting to note in
recent months that while talking
about fundraising capacity, many VCT
providers have stressed the need to
balance the pursuit of new investment
money with the need to deliver
good returns to existing investors.
By its very nature, the number of
good quality VCT-qualifying smaller
companies is a relatively small pool,
but considering the billions of pounds
invested in open ended investment
companies by UK investors (a large
proportion of which will be held in
funds with disappointing returns and
offering no tax incentives) it doesnt
appear that demand for well-managed
VCTs where the performance of the
underlying companies is considered
just as important as the tax benefits
will outstrip supply any time soon. EIS
Octopus currently manages more than 400 million for VCT investors and is the
largest provider of VCT in the UK. We recommend that investors seek investment
advice before investing.
Remember that the shares of smaller and/or unquoted companies are likely to
have higher volatility and liquidity risk than other types of shares quoted on the
London Stock Exchange Official List. Please note that the tax reliefs associated
with VCT investments will depend on the individual circumstances of each
investor and may be subject to change. The availability of tax reliefs also depends
on the investee companies maintaining qualifying status.
21
Investing in Leading
Edge Technology
Successful investment in young, growing technology companies
involves sharing all-important experience and expertise as well
as providing essential capital, says Talon Golding, Head of Fund
Relations & Sales at Mercia Fund Management
Technology is rapidly
transforming our lives, and the
scale and pace of that change means
that it now represents one of the
most exciting areas of opportunity
for investors - just take a look at
the chart below. Whats more, UK
companies are at the forefront of
this wave of innovation.
Gaming, E-commerce and Fintech
Lead the Way
Its clear that the growth potential of
the sector is huge. And the key sectors
driving this growth, for which the UK
can be seen as global leaders, include
gaming and gamification, e-commerce
and financial technology, widely
known as fintech.
You might already know that many
major gaming franchises, including
Grand Theft Auto and Tomb Raider,
Its clear that the

growth potential of the
sector is huge.
22
have been developed in the UK, and

that the country is home to some of
the worlds most innovative games
developers. But gamification is an
extension of this success - applying
game design and thinking to non-game
contexts, so as to increase engagement
in everything from education to
employee motivation.
Britains dominance in the world of
online retailing might come as more of
a surprise. But yes, the UK was named
the worlds leading e-commerce
exporter, in a report published last
year by OC&C Strategy Consultants
in Partnership with Google. Indeed,
Hal Varian, Googles chief economist,
went so far as to say that the UK is
one of the worlds strongest internet
economies. Praise indeed.
Fintech, a relatively newly
coined term, covers a broad range
of technologies developed for the

financial services industry, and
includes everything from mobile
banking to commodity trading
systems. Thanks to the Citys clout
as a world leading financial centre,
combined with the ingenuity of its tech
sector innovators, the UK is regarded
as a global powerhouse for fintech.
Looking ahead, the prospects
are equally exciting. New areas of
development now coming to the
fore include wearable technology,
the so-called Internet of Things
(autonomously communicating
appliances and so forth), and virtual
reality - all of which are forecast
to soar over the next five years. For
investors with the requisite knowledge
of these industries, there is a wave
of emerging stars waiting to be
unearthed in UK businesses that are
currently pioneering innovations

across these technology-driven growth
industries.
The Mercia Method

As one of the UKs leading
technology investors, Mercia Fund
Management is at the forefront of this
surging tide of innovation. Mercia
works in partnership with pioneering
technology-driven businesses in key
growth sectors, aiming to offer both
financial support and expertise to help
accelerate future growth. By providing
a blend of early-stage, development
and growth capital, Mercia can invest
in a wide range of opportunities
whilst being strategically positioned
to allocate follow-on capital to stars in
the portfolio.
As a sector specialist, Mercia offers
value not only in the pre-investment
discovery, analysis and selection
of high-growth opportunities, but,
critically, in the support of those
companies post-investment through a
combination of senior-level experience
in operational management and
proven expertise in structuring and
managing unquoted investments.
A Tax-Efficient Hybrid Structure
The key here is to offer investors a
tax-efficient way to invest in the high
growth potential of the technology

sector. And to this end Mercia has now
successfully launched five investment
funds using a hybrid Enterprise
Investment Scheme (EIS) and Seed
Enterprise Investment Scheme (SEIS)
structure the latest being Mercia
Growth Fund 4, which currently
remains open to new investors.
The capital growth-focused
investment strategy also squeezes the
full benefits from the generous reliefs
available under both EIS and SEIS.
Beyond the upfront relief (30% and
50% respectively), investors have the
ability to receive investment returns
free from Capital Gains Tax (CGT) and, should a given investment not
perform, to restrict the risk to their
capital through loss relief. Of course,
there are also the potential benefits of
Inheritance Tax (IHT) relief and CGT
deferral/exemption to consider.
Getting the Right Mix

The result is to manage risk for
investors seeking to add exposure to
young growing technology companies
to their overall portfolio, in search of
attractive potential returns. The use of
both EIS and SEIS has the potential to
maximise the efficiency of this strategy.
We believe that a sensible approach
is to target businesses with proven
commercial traction, moderate
capital requirements and competent,

experienced management teams.
Portfolio balance is also a key element
of an effective investment strategy;
deploying a blend of early-stage,
development and growth capital across
a diversified range of businesses.
Looking beyond the South East
Mercias deal flow is enhanced
through its partnerships with nine
universities, including Warwick,
Birmingham and Leicester, and
through an extensive presence in the
UK technology sector. Mercia stresses
that it is a national investor, with a
strong focus on the often under-served
Midland and Northern territories of
the UK.
Flexible Access to Further Capital
Arguably the biggest issue for a
growth enterprise is the ability to
raise additional funding to support
that growth. It is certainly rare
within the technology world for a
business to achieve its exit potential
within a single funding round. The
issue, therefore, is: where does this
additional capital come from?
Many investment funds are tied to
particular stages of business growth
and, as such, for example, they might
not be able to support their
Examples of Companies Mercia Invests In

Mercias investments include companies leading the way in technical innovation and development, notable examples of
which include:
nDreams - An innovative computer games developer and publisher, specialising in producing virtual worlds, with current
developments focused on virtual-reality headset platforms from Oculus, Sony and Samsung.
Warwick Audio Technologies - A designer of highly directional Flat Flexible Loudspeakers (FFL), primarily for use by
Original Equipment manufacturers (OEMs) in developing and manufacturing products for public and multiple listener
spaces. The companys patented FFL technology offers OEMs a flat, flexible loudspeaker panel that produces a quality
sound performance at low cost. Warwicks speaker is so thin it resembles a sheet of paper.
Smart Antenna Technologies - SAT has designed, developed and patented a new smart antenna technology that reduces
the number of internal antennas required in current and next-generation cellular handsets, from six (typically to include
DVB-H, Bluetooth, Wi-Fi, GSM, GPS, 3G multi-bands and 4G LTE) to just a single miniaturised antenna. Although some
innovative solutions are already on the market to reduce antenna size and improve performance, SAT has an opportunity to
further raise the bar for the industry.
23
New areas include

wearable technology,
the internet of things
and virtual reality - all
forecast to soar over
the next five years.
investments beyond a seed level.

The result can be that investors are left
vulnerable to later-stage investors who
may heavily dilute the value of their
holdings. In such cases its likely that
later-stage investors will price their
investment proposals heavily, knowing
that the companys options are limited.
But the converse is that a business
may simply be starved of capital thats
vitally needed for growth.
The Hybrid Advantage

Mercias hybrid approach, using a
combination of EIS and SEIS funds,
helps to bridge the total funding
requirement for investee companies.
Investment takes place in tranches,
and the management is required
to meet pre-agreed performance
objectives before it can receive the next
instalment of capital. This approach
doesnt just reduce the risk for
investors (since capital is only injected
once agreed targets are met) it also
allows management to focus its time
and energy on growing the business,
not on sourcing additional funding.
Mercia has now developed and
optimised this approach to followon funding by creating an innovative
venture capital model which includes
24
a later-stage direct investment vehicle

that will be able to provide deploy
the capital and resources required to
rapidly scale, and ultimately to exit, the
emerging stars from the portfolio.
Taking Scalability To the Next
Level
This innovative model has been
made possible through the advent of
Mercia Technologies PLC, which listed
on AIM in December, raising 70m.
Mercia Technologies, the parent of
the wholly owned subsidiary Mercia
Fund Management, has been backed
by key institutions including Woodford
Investment Management, Invesco and
Baillie Gifford.
The core objective of the business
is to invest directly at a later stage
into the Mercia Fund Management

portfolio (EIS and SEIS); the result is
the potential for a single investment
partner solution for highly scalable UK
technology companies.
As a result, Mercia is able to offer
an unrivalled degree of support
to investee companies through an
enhanced resource base, whilst
allowing it to develop even stronger
relationships with its portfolio. An
in-house incubator is available at
Mercias offices in Henley-in-Arden,
Warwickshire, to help nurture earlystage businesses joining the portfolio.
We feel that the combined model
also makes Mercia an attractive
investment partner, strengthening
Mercia Fund Managements position as
a leading technology investor. EIS
The Multi-Manager EIS Platform

Kuber Ventures offer investors access to some of the most
innovative EIS investment opportunities around, managed by
leading Fund Managers and all within a single platform.
Investors who qualify for EIS can benefit from:
30% upfront income tax relief on amount subscribed (up to

a maximum investment of 1 million for the 2014/2015 tax
year and/or 1 million carried back to 2013/14 tax year);
100% inheritance tax relief after two years (provided the
investment is held at the time of death);
Capital Gains Tax deferral for the life of the investment on
amount subscribed;
100% tax free growth (provided income tax relief has been
given and not withdrawn and disposal takes place more than
three years after the investment begins to trade);
Investors can choose from a range of EIS funds, creating a single

portfolio which is diversified across a number of Fund Managers and
underlying portfolio companies, offering targeted spread of between 15-40 companies in a typical portfolio.
For more information about Kuber Ventures and its range of EIS
Portfolio Funds, please visit www.kuberventures.com
CONTACT US
10 Old Burlington Street, London,

W1S 3AG
T: +44 (0)20 7478 8540
E: info@kuber.uk.com
Kuber Ventures Ltd [FRN 574987]

is an Appointed Representative of
Sturgeon Ventures LLP which are
Authorised and Regulated by the
Financial Services Authority. Kuber
Ventures Ltd, 10 Old Burlington
Street, London W1S 3AG, registered number: 8693809,
VAT: 175 9290 69
Telephone: +44 (0) 20 7478 8540;
Fax: +44 (0) 20 7009 6601.
www.kuberventures.co.uk
Tax and
Eligibility
Issues
An Overview of the Essentials for Advisers
Forgive us if you already know all of what follows in

this feature. Indeed, most advisers will. But the ground
has been shifting so extensively in recent years that there
seems to be no harm in restating a few of the basics.
And with the arrival of relative newcomers like SEIS and
SITR which may well prove to be an attractive route for
alternative energy investors after April - it doesnt do any
harm to re-state the obvious.
A HNW Alternative to Pension Savings?

Weve said elsewhere in this magazine that a significant
proportion of the money now coming into EIS and VCT
has been effectively diverted from pension savings by last
Aprils lowering of the lifetime pensions cap from 1.5
million to 1.25 million. For many, the loss of tax-efficient
pension contributions is proving to be amply compensated
by the alternative advantages of the upfront 30% tax rebate
that comes with eligible EIS investments of up to 1 million;
but for some, the 50% rebate on 100,000 worth of Seed
Enterprise Investment Schemes (SEIS) may in fact prove
better still.
Dont Forget the Other Benefits
But thats only the start, of course. All investors, including
those who arent diverting pension savings but are simply
seeking the better potential growth prospects from SEIS,
VCT and the like, stand to benefit from a range of other
incentives.
EIS
Funds invested in eligible EIS schemes enjoy
100%
exemption from capital gains tax (normally
28%), as long as they are held for at least
three years. They are a useful repository for
the receipts from any kind of asset disposal,
allowing the bearer to defer CGT on any
such gains for the life of the investment.
Even capital losses on an EIS investment
can be offset against income in the year that
the loss arises, or in the previous tax year. For
a top rate taxpayer the benefit equates to 35%
of the EIS shares value meaning that investor
has a downside loss protection of 65 pence in the
pound by the time income and capital gains tax relief
have been factored in.
Investments in EIS-compliant shares are capable of
attracting IHT business property relief (BPR) to the value of
the original investment, upon being gifted or upon death
26
Tax and Eligibility Issues
SEIS
The Seed Enterprise Investment Scheme regime (SEIS),
launched in 2012, focuses mainly on smaller early-stage
companies and offers an enhanced 50% income tax relief
for individuals who invest in shareholdings of up to 30% of
such companies. (As distinct from the 30% relief available
to EIS investors.) The annual investment limit is set
lower for such investors - 100,000 for individuals and a
cumulative 150,000 for companies, subject to certain other
restrictions.
In certain circumstances SEIS investments in this tax year
may attract 50% CGT relief on gains made in the 13/14
tax year, a potential further 14% relief to add to the 50%
income tax relief.
SITR
SITR, which was introduced last April, is designed
to benefit savers who fund so-called social enterprises
(community interest companies, community benefit
societies or charities), under very much the same sort of
qualifying conditions as EIS. Although, as weve noted, some
providers are examining ways of using them to achieve
alternative energy concessions which are being withdrawn
from EIS this year. This is a changing situation, and well be
keeping you informed on developments.
The 30% income tax reliefs resemble those of the existing
EIS regime, and the investment limit is also set at 1 million;
but the conditions are more complex. The investor cannot
own more than 30% of the recipient social enterprise; he
cannot be an employee or paid director.
VCT
Venture Capital Trusts also qualify for a 30% income
tax rebate, but the qualifying period has been set since
2006/2007 at five years instead of three years as previously,
and as would be the case with EIS. (There is a proviso that
the investor actually needs to have paid this amount of tax.)
As youd expect, the advantages of

BPR schemes are focused solely on
inheritance tax
Dividends are not liable to income tax on dividends, and
there is no tax charged on realised gains, and no CGT upon
disposal. The annual subscription limit is 200,000.
Because VCTs are listed companies in their own right,
they may be purchased in the secondary market as well
as when new. Thats a critical difference, but it should be
remembered that liquidity may be an issue that may
affect prices.
Business Property Relief

As youd expect, the advantages of BPR schemes are
focused solely on inheritance tax. There are no ceilings, and
the eligibility comes in after two years rather than three,
as with EIS. IHT relief is available at 100%, except for a
reduced 50% rate on certain land, buildings, machinery
or plant, and also on any quoted shares which give control
of the company. (The emphasis with PBR is soundly on
unquoted investments.) Cash balances sitting in a company
will probably not be allowed against IHT after death.
BPR does not apply to enterprises that are not-for-profit
or do not operate on a commercial basis. Lettings and
property management are generally excluded. But farming,
woodland management and hunting all count as trading
for the purposes of the regulations.
The main caveat for investors is that HMRC approval of
BPR eligibility is constantly vulnerable to review, including
retrospectively. Changing circumstances at an eligible
company can impact on its BR status, and should be
monitored carefully. EIS
SITR
SEIS
EIS
Maximum investment per individual
1 million
100,000
1 million
Income tax relief
30%
50%
30%
Capital gains tax free?
Yes
Yes
Yes
CGT deferral?
Yes
No
Yes
CGT relief?
No
50%
No
Minimum holding period
3 Years
3 Years
3 Years
Maximum per investee entity
344,827
(c285,000)
over 3 years
150,000
5 million in any 12
months
Unique benefit
Can apply to debt

instruments as well as
shares
Highest rate of relief

and CGT holiday
Highest investment
limit
Source: Baker Tilly
27
SUSTAINABLE TECHNOLOGY INVESTORS

APPROVED EIS FUND 3
10 Million UK Sustainable Energy Fund
Your attention is drawn to the Important Notice at the end of this document and the risk warnings contained therein. Words and expressions
defined in the Information Memorandum shall have the same meaning as in this document
Compelling investment opportunity in the sustainable energy sector

STILs third EIS fund focused on UK sustainable energy assets
A management team with a 45% IRR track record
The Sustainable Technology Investors Approved EIS Fund 3 (the Fund) offers exposure to a portfolio of sustainable energy
companies operating within the anaerobic digestion (AD) and run-of-river hydro (Hydro) sub sectors, targeting superior risk
adjusted returns with an emphasis on downside mitigation, whilst taking advantage of EIS tax incentives.
The Fund Manager

Sustainable Technology Investors Ltd (STIL) is
based in London and authorised and regulated by the
Financial Conduct Authority.
STIL manages or advises on private equity
investments and committed funds of over 113
million in the sustainable energy, technology and
energy efficiency sectors.
STIL has a sector specialist management team with a
strong investment and development track record,
particularly in AD and Hydro.
STIL has a highly experienced Investment Team
with a verified track record of 45% IRR from 55
sustainable energy and technology investments
over 29 years.
Key Reasons to Invest

Targeted cash returns of 1.25 for a net 70p invested (79% uplift).
This would represent a 16% IRR over the 4 year period, equivalent to
a 30% IRR to an additional rate tax payer entitled to EIS income tax
relief.
Downside risk mitigation sought at 90% of the subscription price
with low cyclicality, predictable cash flows and asset backing whilst
maintaining the potential for good yields and capital gain on exit.
HMRC Approved EIS Fund When 90% invested in first 12 months
investors can claim income tax relief as if shares were subscribed for
in the tax year 2014/15.
A proven Fund Manager who has already fully invested STIL EIS
Fund 1 and invested more than 90% of STIL EIS Fund 2 within 8
months of fund close.
A management team with years of investment and development
experience across AD and Hydro, an enviable track record and
access to a strong pipeline of investment opportunities.
An exciting opportunity to access investment in the UK sustainable
energy sector. Key features include revenues supported by long-term
government policies and subsidies such as Feed-in Tariffs (FITs)
and the Renewable Heat Incentive (RHI), whilst targeting attractive
investment returns due to increasing energy demand and growing
resource scarcity.
Investment Team
Gordon Power Chairman, 30
years private equity investment and
fund management experience.
An overall track record of 29% IRR
from 239 investments and a 45%
IRR
from
29
sustainable
investments.
Jim Totty - Managing Partner, 21
years experience in sustainable
and clean technology, with 13 years
private
equity
investment
experience.
A 30% IRR from 20 sustainable
private equity investments.
Nick Pople - Managing Partner, 22
years sector experience across
sustainable
energy
and
technologies, with 17 years private
equity investment experience.
A 36% IRR from 23 sustainable
private equity investments.
Operating Partners
Firglas Ltd (Firglas) a specialist renewables
project developer and operator. Sourced and now
developing, in partnership with STIL, an AD plant
and two Hydro schemes in the UK.
Fredrik Adams Founder and
CEO of Firglas. Has worked with
STIL since 2009 when he formed
Adgen Energy Ltd, since acquired
by Tamar Energy, now one of the
largest AD operators in the UK.
Simon Cordery Operating
Partner who has worked closely
with STIL since 2010. Significant
renewable energy development
experience, particularly in AD.
Founder
of
Energy
and
Environment practice with Savills
in 2006.
EIS Tax Reliefs

Income tax relief at 30%
Tax-free capital gains when shares sold
Capital Gains Tax deferral
Business Property Relief
Loss relief against taxable income
Tax reliefs are dependent on investors individual
circumstances and are subject to change. The availability
of tax reliefs also depends on investee companies
maintaining their qualifying status.
STIL EIS Fund 3 - Investment Strategy

An existing platform of two businesses available for co-investment and
a strong pipeline of development assets.
Aim to provide Investors with a diversified portfolio of investments
which has a lower correlation to stock market movements.
Focus on AD and Hydro the sub-sectors where FITS and EIS relief
can still be combined, the core investment focus of STIL EIS Fund 1
and Fund 2, and the areas where the Fund Manager has in-depth
experience, an extensive track record and a pipeline of investment
opportunities.
Downside risk mitigated by targeting asset backed companies with
contracted third party revenues, proven technologies with warranties and
UK government guaranteed FITs and possibly RHI revenues.
Sustainable Technology Investors Approved EIS Fund 3

Fund Terms
Fund Size
10 million
Fund Type
HMRC Approved complying EIS Fund
Investment Focus
Anaerobic digestion (AD) and run-of-river

hydro (Hydro)
Closing Date
02 April 2015
Target Return
1.25 on a net 70p invested
Exit Strategy
Liquidity targeted at 4 years
Initial Charges
2% (plus up to 3% adviser fee if

applicable)
Annual Charges
2% AMC (plus 0.5% admin charge)
Performance Incentive Fee Zero until return hurdle of 1.16 (in

respect of every 1 invested) is reached
4p catch up between 1.16 and 1.20
Example Investee Company

STIL EIS Fund 1 and Fund 2 invested in Black Dog
Biogas Ltd, a developer, owner, operator of AD
plants in the UK. Its first project is a 499kW AD plant
on the Isle of Wight. There is the potential to expand
the plant up to 1MW in 2015 with further investment.
20% on returns between 1.20 and 1.25

30% on returns above 1.25
For further information please contact LGBR Capital:

Tel:
Email:
Web:
020 3195 7100

sales@lgbrcapital.com
www.lgbrcapital.com
Black Dogs Isle of Wight AD Plant under construction
Important Notice
This document has been issued and approved as a financial promotion for the purpose of Section 21 of the Financial Services and Markets Act 2000 (FSMA) by
Sustainable Technology Investors Limited (STIL), which is authorised and regulated by the Financial Conduct Authority (FCA), under reference number 221604 and
whose registered office is at 31A St Jamess Square, London SW1Y 4JR. STIL has taken all reasonable care to ensure that this document is fair, clear and not
misleading but the statements of opinion or belief contained in this document regarding future events constitute STILs own assessment and interpretation of information
available to it at the date of issue of this document and no representation is made that such statements are correct or that the objectives of the Fund will be achieved. No
reliance is to be placed on the information contained in this document. It is important that prospective investors read and understand fully the Information
Memorandum relating to the Fund, dated November 2014, and the risks involved with the arrangements described in this document (which is only a summary
of some of the information in the Information Memorandum). The opportunity described in this document is NOT suitable for all investors. Key risks are
explained in the Information Memorandum and should be carefully considered. Investment in EIS qualifying companies are considered to be high-risk, including
illiquidity, lack of dividends, loss of investment and dilution. You should be aware that shares and income from them may go down as well as up and you may not get
back the amount originally invested. Past performance is not a reliable indicator of future performance and may not be repeated. An investment in smaller and unquoted
companies carries a higher risk than many other forms of investment. The Funds investments are likely to be illiquid and difficult to realise. Prospective investors should
regard an investment in the Fund as a long term investment; realisation of the original investment will be piecemeal and, in practice, may extend beyond 4 years.
Accordingly your capital is at risk and you may lose all the money you invest. Tax reliefs are dependent upon an investors individual circumstances and are subject to
change. Prospective investors should seek their own independent advice and then rely on their own independent assessment of the Fund; nothing in this document
constitutes tax, financial, legal or investment advice. STIL is unable to provide financial, investment or tax advice. This document does not constitute, and may not be
used for the purposes of, an offer to or invitation to treat by any person in any jurisdiction outside the United Kingdom. This document and the information contained in it
are not for publication or distribution to persons outside the United Kingdom.
Open Offers
Highlighting some of the key tax efficient investment
offerings currently available to IFAs
Investment Key:
EIS
SEIS
EIS
Open
Close
22/12/2014
31/03/2015
Minimum investment: 25,000*
VCT
OEIC
IHT
BPR
Motion Picture Capital - HMRC-approved EIS Fund

Motion Picture Capital provides a platform for the development, financing and
distribution of film & television content as part of the Reliance Entertainment
Group. Other Reliance companies include Steven Spielbergs DreamWorks
Studios. This HMRC-approved EIS Fund offers investors access to a robust capital
preservation strategy with a unique charging and profit distribution structure. A
direct equity participation in this slate of high quality film & television projects
of a truly global scale adds significant upside potential. As with all investments,
there is the potential for risk as well as reward: investors may not get back what
they put in. EIS tax relief depends on individuals circumstances and may be
subject to change.
* (Inc. initial charge)
T. 0207 025 8199

E. info@motionpicturecapital.com
www.motionpicturecapital.com
EIS
Open
Now
Close
N/A
Amount to be Raised: Unlimited
T. 020 7361 0212

E. fundenquiries@mmcventures.com
www.mmcventures.com
30
MMC Ventures - EIS Fund

The MMC Ventures EIS Fund offers investors exposure to a portfolio of hard-toaccess fast growing private companies, combing real capital upside potential
with generous EIS tax reliefs.
Founded in 2000, MMC is regularly rated as one of the top 5 most active venture
investors in the UK, investing circa 20 million per annum in a combination of
new deals and follow-on capital for existing portfolio companies. An investor in
the MMC EIS Fund can expect a portfolio of 8-10 companies within 12-15 months
of subscribing. The MMC EIS Fund is categorised as a generalist product but they
have a clear investment focus on technology-enabled sectors where the UK is a
world leader - particularly financial and business services, business software,
digital media and e-commerce. MMCs fundamental approach is to invest on the
commercial merits of each transaction, viewing the EIS tax benefits as highly
desirable but not the reason to invest. This approach is reinforced by their policy
of co-investing their EIS Fund alongside other funds they manage that do not
qualify for EIS tax relief.
Open Offers
EIS
Kuber Ventures Multi Manager Platform
Open
Kuber Ventures Multi-Manager EIS Platform, has a range of portfolios which are
each diversified across a number of Fund Managers. Through a single application
and depending on the Portfolio selected, our Portfolios allow investors to create a
diversified spread of up to 40 qualifying EIS investments.
Close
Now
Evergreen
Minimum Subscription: 20,000
Investors may select individual funds or choose to achieve further diversification

by investing in one of the Kuber Portfolios available.
Our Portfolio choices include:
Renewable Energy Portfolio (Fund of 3 Funds) Deadline 31st March for current
tax year
Exit Focused Portfolio (Fund of 4 Funds) Deadline 31st March for current tax year
Diversified Portfolio (Fund of 9 Funds) Evergreen with a regular share allotments
Venture Growth (Fund of 5 Funds) Evergreen with regular share allotments
SEIS Portfolio (Fund of 2 Funds) Deadline 31st March for current tax year
Octopus Investments / The Octopus Enterprise Investment Scheme

Octopus is the largest provider of EIS solutions in the UK+, with more than 600
million invested across its EIS range. Octopus EIS will invest in energy companies,
including reserve power businesses and companies generating renewable energy
from anaerobic digestion. These companies use proven technologies, have strong
capital preservation characteristics, and benefit from government-backed support
mechanisms. Of course, Octopus EIS investors may also benefit from valuable
tax incentives available to EIS investors details are in our product literature at
octopusinvestments.com/eis.
The success of Octopus EIS, currently on tranche 18, is built on the strength of the
exclusive relationships Octopus has with development partners. Previous tranches of
Octopus EIS invested in solar energy, an area in which Octopus moved from being a
new entrant in the market to the largest investor in the UK*. Just as Octopus worked
with an experienced development firm for solar (Lightsource Renewable Energy),
Octopus has similar exclusive partnerships with experienced partners to invest in EIS
companies that own and operate anaerobic digestion and reserve power plants.
+ Source: Tax Efficient Review, 2014
*Source: Bloomberg New Energy Finance, Total UK installed capacity MWP, March 2014
T. 020 7478 8540

E. info@kuber.uk.com
www.kuberventures.co.uk
EIS
Open
Close
21/01/2015
25/03/2015
Amount to be Raised: 20m
T. 0800 316 2067

E.salessupport@octopusinvestments.com
www.octopusinvestments.com/eis
EIS
Peto - One To Watch
Open
Peto was appointed in September 2014 to support the Trust in the delivery of
savings from the off-contract spend of around 38million per year.
Late Feb 2015
Close
TBC
Amount to be Raised: TBC
Three months into service delivery the Peto team, are achieving 12% realised
savings against a target of 4% on prior spend. This is a strong result, reinforced
by huge opportunity to increase the scope of the throughput which has
been lower than forecast to date. Peto has been working with Barts Health
procurement team, budget holders, and the Peto marketplace, peto.co.uk.
About Peto
Active in over 200 NHS trusts, Peto connects public sector buyers and private
sector sellers via an easy-to-use online marketplace, and where necessary, with
additional resources to reduce spend via its insourcing procurement service.
T. 01983 282925
E. tom.death@ifmackinnon.co.uk
www.peto.co.uk
31
Open Offers
EIS
Open
Close
27/10/2014
27/03/2015
Minimum Investment: 10,000
Ingenious Renewable Energy EIS 2014/15

An opportunity to invest in a portfolio of EIS qualifying companies operating
renewable energy generation businesses or providing services to support
them. Since 2012, we have successfully launched three renewable energy EIS
investment opportunities and as before, investors will benefit from EIS reliefs
and uncapped upside potential. We are specialists in the renewable energy sector
having raised over 220 million to date, applying our broad expertise to source
attractive investment opportunities for our investors.
T. 020 7319 4291

E. hello@ingeniousinvestments.co.uk
www.ingeniousinvestments.co.uk
EIS
Open
Close
22/09/2014
27/03/2015
Ingenious Path Plus Film EIS

Following the successful launch of the first Ingenious Path EIS Film Fund in
2012, Ingenious is delighted to return to the market with a new discretionary
managed service investing in a portfolio of HMRC EIS qualifying companies
producing independent feature films. Path is the UKs leading independent film
distribution and sales company, founded in 1896 and with a first class record in
UK and French distribution and international sales. Paths major international
hits include Slumdog Millionaire, The Queen, The Iron Lady and Philomena.
T. 020 7319 4291

EIS
Open
06/01/2015
Close
27/03/2015
T. 020 7319 4291

32
Shelley Media EIS Spring 2015

An exciting opportunity to invest in Enterprise Investment Scheme (EIS)
qualifying companies developing and producing film and television content for
the global market. The Shelley Media strategy has raised over 150 million of
qualifying investment, producing independent films and TV programmes for
distributors such as Warner Bros., Sony Pictures and HBO. Highlights include
Carol starring Academy Award winner Cate Blanchett, What We Did On Our
Holiday with Rosamund Pike and David Tennant (Doctor Who), Mr Turner with
Timothy Spall (Harry Potter) and Locke, starring Tom Hardy.
Open Offers
EIS
Calculus Capital EIS Fund 2015
Open
Calculus Capital is a specialist in creating and managing private equity funds for
individuals. A pioneer in the Enterprise Investment Scheme (EIS) space, Calculus
launched the UKs first approved EIS fund in 1999 and has gone on to launch
14 further funds. Calculus seeks capital appreciation from dynamic, established
private UK companies across a multitude of sectors.
Close
04/06/2014
03/04/2015
Calculus Capitals experienced investment team, diligent investment process and

hands on approach has resulted in an impressive track record of investment
success, achieving 20 exits to date with an average ROI of 3.4x exclusive of
tax reliefs.
Calculus Capital is authorised and regulated by the Financial Conduct Authority.
T. 020 7493 4940

E. info@calculuscapital.com
www.calculuscapital.com
EIS
Open
Par Syndicate EIS Fund

The Par Syndicate EIS Fund is an evergreen EIS fund, unapproved by HMRC,
investing in innovative high growth potential companies with a view to
generating capital gains. The fund, managed by Par Fund Management Limited,
made its first investment in December 2012. The funds mandate is to invest
alongside (and on the same terms as) business angel syndicates, and usually,
but not exclusively, co-invests with the Par Syndicate, a leading business angel
syndicate that has been investing since 2009. The fund is currently open to
elective professional clients only.
Par Equity is a boutique investment firm established in 2008. It pursues a
distinct investment philosophy of intellectual and financial capital that hinges
on combining the best features of business angel groups and professional
venture capital investment practice. Key to this is the involvement of a large
and active business angel syndicate whose members add significant value to
the identification, evaluation and post-investment management of investments
that they and the Par Syndicate EIS Fund invest in, giving Fund investors the
opportunity to invest in rigorously selected companies on the same terms as
industry and sector insiders.
Puma EIS employs an investment strategy similar to that successfully deployed

by the Puma VCTs and aims to provide investors with downside protection in
a carefully managed portfolio. Building on Pumas established track record in
tax efficient investments, Puma EIS targets asset-backed businesses aiming to
provide downside protection for investors through a portfolio exposure to HMRC
preapproved companies.
Successful Deployment: Puma EIS was the largest fundraise of any new EIS
strategy seeking lower risk launched in 2013/14 tax year. All funds raised were
successfully deployed into companies with HMRC Advanced Assurance before the
end of the tax year end. Allotment Dates: The discretionary management service
has no fixed closing date. There will be quarterly allotments with an allotment
shortly in advance of the tax year each year. Strong Track Record: Building
on the market leading track record of the Puma VCTs which operate a similar
asset-backed investment strategy. Realisations: It is envisaged that investments
in Qualifying Companies will be realised within 3 to 5 years. Investment Size:
Minimum subscription is 25,000 with no upper limit.
Evergreen
T. 0131 556 0044

E. info@parequity.com
www.parequity.com
EIS
Open
PUMA INVESTMENTS - PUMA EIS
Close
Now
January 2014
Close
Quarterly
T. 020 7408 4070

E. info@pumainvestments.co.uk
www.pumainvestments.co.uk
33
Welcome to London Capital Club
Your space in the heart of the City for

meeting, dining and networking
A Space for Meeting
Events & Networking
London Capital Club is the perfect location for

meeting with clients over an informal coffee, a
spot of lunch, or in one of our sumptuous private
meeting spaces.
We host a range of networking events, as well

as keynote speaker events. We have spaces for
members events and can accommodate up to
150 delegates in a variety of room set-ups.
London and Beyond
Restaurant Fine Dining
Club members receive the same exceptional service

in over 250 clubs worldwide, which make up the IAC
network, as well as access to further benefits, such as
discounts at some of the countrys best golf courses
and hotels.
Enjoy the brasserie-style ambience in our public bar and

restaurant, @15, formal dining in our members restaurant
The Walbrook Grill, or hold a private function in one of our
historic rooms for an outstanding fine dining experience.
We look forward to welcoming you to London Capital Club

T: 0207 717 0088
E: enquiries@londoncapitalclub.com
A: 15 Abchurch Lane, London EC4N 7BW
W: www.londoncapitalclub.com
Find Us:
Bank
Cannon Street
Follow us @LondonCapClub
Monument
Open Offers
EIS
Oxford Capital Growth EIS
Open
Through the Oxford Capital Growth EIS, investors can build a portfolio of shares
in 6-10 small or medium-sized British companies over a period of roughly
12 months. Each investment should be eligible for EIS reliefs, including 30%
income tax relief and tax-free gains. Investee companies could be operating in a
wide range of industries past investments have spanned sectors from digital
marketing to sustainable agriculture but they will all be businesses that have
potential to grow rapidly.
Oxford Capital works closely with the investee companies, helping to accelerate
commercial development with the aim of achieving a profitable exit, usually
through either a trade sale or a stock market listing. The Oxford Capital Growth
EIS targets a return of 2.5x the amount invested (net of applicable fees and
including the impact of EIS income tax relief), aiming to return the majority of
proceeds 4-6 years after initial investment.
Close
Now
Evergreen
T. +44(0)1865 860 760

E. info@oxcp.com
www.oxcp.com
EIS
Oxford Capital Infrastructure EIS
Open
Through the Oxford Capital Infrastructure EIS, investors can benefit from EIS tax
advantages including 30% income tax relief and tax-free gains, by acquiring
shares in one or more EIS-qualifying companies that own and operate
infrastructure assets. Oxford Capital aims to invest in companies capable of
generating stable revenues through long-term contracts, producing returns of
1.10-1.15 per 1 invested (net of applicable fees and not including the impact
of EIS income tax relief). The current investment focus of the Infrastructure EIS
includes anaerobic digestion, hydroelectric power and small-scale
power generation.
Shares are normally purchased for the investor within 4-6 weeks of submission
of their subscription. EIS3 certificates are available on average 12 months after
purchase of shares. Oxford Capital will aim to sell the shares to a strategic
acquirer and return capital to investors after the fourth year of the investment.
Close
Now
Evergreen
T. +44(0)1865 860 760

E. info@oxcp.com
www.oxcp.com
EIS
Enterprise Invesment Partners - The Imbiba Fund
Open
The Fund will invest in a diverse portfolio of up to 5 businesses in the Leisure &
Hospitality sector in Central London, with the award-winning Imbiba Team as
asset managers. Imbibas outstanding track record boasts 8 EIS exits realised
with an IRR of 35% (excluding EIS tax relief). Significant personal investment by
both Imbiba and Enterprise (EIP) of up to 200,000 into each investee company.
The offer comprises 2 investment tranches of 10m in current tax year 2014/15
and 15m in 2015/16 with an industry leading performance hurdle rate at 1.50
per 1.00 invested.
15/01/2015
Close
31/03/2015
T. 020 7487 8282

www.enterprise-ip.com
35
Open Offers
EIS
Open
Close
Now
02/04/2015
T. 020 3195 7100

E. sales@lgbrcapital.com
www.lgbrcapital.com
EIS
Open
Close
20/01/2015
31/12/2015
Sustainable Technology Investors Approved EIS Fund 3

Sustainable Technology Investors Approved EIS Fund 3 (STIL EIS Fund 3) is offering
exposure to a portfolio of sustainable energy companies within the Anaerobic
Digestion (AD) and Hydro sub-sectors, targeting superior risk adjusted returns with
an emphasis on downside mitigation, whilst taking advantage of EIS tax incentives.
STIL EIS Fund 3 is targeting cash returns to investors of 1.25 for a net 70p invested
(79% uplift), representing a 16% IRR, equivalent to a 30% IRR to an additional rate
tax payer entitled to EIS income tax relief. All subscriptions received by 2 April 2015
will be invested in the current tax year, allowing EIS Income Tax Relief to be claimed
in the 2014/15 tax year or carried back to the 2013/14 tax year. This is STILs third
EIS Fund with a similar focus, from a sector specialist management team with strong
investment and development track record, particularly in AD and Hydro. STIL has a
highly experienced Investment Team with a verified track record of 45% IRR from
55 sustainable energy and technology investments over 29 years and an existing
platform of two EIS qualifying businesses available for co-investment and a strong
pipeline of development assets.
This financial promotion has been approved by Sustainable Technology Investors Limited, which is authorised
and regulated by the Financial Conduct Authority (FCA) with firm reference number 221604. This promotion
is directed only at advisers who are authorised and regulated by the FCA. Investments in funds such as STIL
EIS Fund 3 are high risk, and investors may not get back all the money they put in.
The Wine Enterprise Investment Scheme Limited

An investment combining the asset class of fine wine and its unique
characteristics with the tax advantages of EIS. The Company commenced trading
fine wines in 2012, currently has over 3.5m under management and, since
already trading, can issue EIS3s promptly.
The team, with a 60+ years combined wine investment trackrecord and over
35m of assets under management, are widely recognized as the fine wine
investment experts. This EIS offer is targeting a return of 1.21 after 3 years for
each 1 gross invested. Closing rounds 30 January, 27 February and 31 March
and quarterly thereafter. Minimum investment 10,000 and 3% available to
intermediaries.
T. +44 020 7478 0901

E. adc@wineinvestmentfund.com
www.wine-eis.com
EIS
Open
01/01/2015
Close
31/03/2015
Amount to be Raised: 2,000,000
T. 01983 282925
E. X-Wind@ifmackinnon.co.uk
www.x-windpower.co.uk
36
X-Wind Power
X-Wind has developed a ground-breaking Vertical Axis Wind Turbine aimed at
the medium scale renewable energy sector. The team has drawn on its extensive
experience gained developing the worlds largest wind turbines at Vestas. Since
its launch in 2012 X-Winds core patented technology has won five high-profile
technology awards.
X-Wind visible sales pipeline exceeds 40 million. The company is also securing
commercial commitments for its 80kW turbines from customers in need to
secure energy pricing and supply. X-Wind has secured a partnership with the
UKs largest electricity user. To date X-Wind has raised 1.7 million in grants and
0.3M of equity. X-Wind currently requires 2.0M of equity funding to complete
the production of their first full-scale 80kW turbine.
Open Offers
EIS
Deepbridge - Hydro EIS
Open
The Deepbridge Hydro EIS is a discretionary managed portfolio service; representing

the last opportunity for UK taxpayers to invest in EIS-qualifying investee companies
generating long term, stable and predictable returns from the operation of hydroelectricity generating projects in the UK. The core proposition of the investee
companies identifies, through rigorous due diligence and engagement, attractive
projects in the hydroelectricity sector of the UK renewable energy industry. The
proposition involves the acquisition of established projects as well as construction
and development projects; in which case proven engineering, procurement and
construction contractors will be appointed with oversight by the Investment Manager.
By investing in such asset-backed opportunities that benefit from contractual
revenues available under the Renewables Obligation, the EIS seeks to ensure an
enduring focus upon capital preservation as well as generating stable and predictable
returns for the investor. The target return for the Deepbridge Hydro EIS is 125p
returned for every 100p invested, over 3-4 years. To ensure maximum tax efficiency
for the investor, the Deepbridge Hydro EIS is entirely investor-fee free at point
of investment.
The value of an investment may go down as well as up and investors may not get back the full
amount invested. Investments in small unquoted companies carry an above-average level of risk.
Deepbridge - Technology Growth EIS
Close
01/11/2014
05/04/2015
T. 01244 893182
www.deepbridgecapital.com
EIS
Open
The Deepbridge Technology Growth EIS represents an opportunity for investors

to participate in a portfolio of actively-managed growth-stage technology
companies, taking advantage of the potential tax benefits available under the
Enterprise Investment Scheme. The Deepbridge Technology Growth EIS is
a diversified portfolio of actively managed high-growth companies seeking
commercialisation funding. The Deepbridge EIS invests in companies that have
a proven technology, clear intellectual property and are operating in a high
growth/high value market sector.
The Fund is focused on investing in high growth companies that are seeking to
commercialise and expand, specifically in three sectors:
Energy & resource innovation; including waste water treatment and conservation, advanced
materials and renewable energy generation technologies;
Medical technology; such as medical and surgical instrumentation, devices and diagnostics;
IT-based technology; particularly Enterprise Application Software and Software as a Service.
The target return for the Deepbridge Technology Growth EIS 22.9% p.a. over a minimum of
three years; representing mid-case capital growth of 160p returned for every 100p invested.
To ensure maximum tax efficiency for the investor, the Deepbridge EIS is entirely investor-fee
free at point of investment.
Guinness - Sustainable Energy EIS 6
Guinness has been granted exclusivity on two hydro projects of 2MW and 1MW
respectively. The projects have received planning permission, grid connection
offers and environmental approvals and are ready for construction subject to
final due diligence and investment committee approval. The Investment Manager
is sourcing additional hydro projects for the investment portfolio.
N/A
T. 01244 893182
www.deepbridgecapital.com
EIS
Open
Guinness EIS 6 has been established to make investments in UK Sustainable

Energy companies that are eligible for EIS tax reliefs. The investment objective
of Guinness EIS 6 is to deliver tax-free investment returns of over 1.20 per
1.00 invested, net of all fees, in addition to 0.30 of EIS Income Tax Relief.
Subscriptions received by 1 April 2015 will be invested in the current tax year.
EIS Income Tax Relief can be claimed in the 2014/15 tax year or carried back to
the 2013/14 tax year.
Close
01/08/2013
Now
Close
02/04/2015
T. 020 7222 3475

E. eis@guinnessfunds.com
www.guinnessfunds.com/eis
37
Open Offers
EIS
Open
Now
Close
06/04/2015
T. 020 7222 3475

E. eis@guinnessfunds.com
www.guinnessfunds.com/eis
EIS
Open
26/01/2015
SEIS
Close
30/04/2015
Amount: Min 3m - Max 8m
T. 0330 223 1430

E. Talong@merciafund.co.uk
www.merciafund.co.uk
EIS
SEIS
Open
Close
02/09/2014
01/04/2015
T. 020 7416 7780

E. contact@downing.co.uk
www.downing.co.uk
38
Guinness - AIM EIS 2015

Guinness AIM EIS 2015 has been established to make investments in AIMlisted companies that are eligible for EIS tax reliefs. The investment objective of
Guinness AIM EIS 2015 is to deliver tax-free investment returns of over 1.30
per 1.00 invested, net of all fees, in addition to 0.30 of EIS Income Tax Relief.
The Investment Manager will invest in a portfolio of AIM listed companies that it
believes will offer capital gain underpinned by sound financial assumptions and
robust management teams.
Guinness AIM EIS 2015 is an Approved Fund for EIS purposes. Investors will
be able to claim Income Tax Relief in the 2015/16 tax year, or carry back to the
2014/15 tax year. In addition, as an Approved Fund, the process of claiming EIS
Income Tax Relief is greatly simplified. Rather than receiving an EIS 3 certificate
for each investment made, Investors will be issued with a single EIS 5 Certificate
with which EIS Income Tax Relief and other tax reliefs can be claimed. Investors
can expect to receive their EIS 5 Certificate by spring 2016.
Mercia Fund Management - Mercia Growth Fund 4
(75% EIS, 25% SEIS)
Mercia Fund Management, a wholly owned subsidiary of Mercia Technologies PLC,

is a leading investor in UK technology; specialising in the commercialisation of
businesses with high growth potential across a range of technology driven sectors in
which deep expertise is held.
Mercia Growth Fund 4 will utilise the hybrid structure of Mercias previous four
tax efficient funds, combining EIS and SEIS, to invest in a diversified portfolio of
innovative technology companies. The hybrid approach aims to offer an optimal
balance between capital growth, portfolio risk and time horizon whilst maximising
the tax advantages available.
Mercia has partnerships with nine universities, including Warwick, Leicester and
Birmingham, and has a leading industry position which ensures a consistent, high
quality pipeline of deal flow opportunities.
Mercia Growth Fund 4 will target exit realisations between three and seven years.
Mercia Technologies PLC, which listed on AIM in December 2014 raising 70m, aims
to provide later stage capital to the emerging stars in the Mercia Fund Management
portfolio, offering a unique venture capital model with key strategic advantages
for investors.
Downing Growth 4 EIS & SEIS

Downing Growth 4 invests in high risk, high potential return investment
opportunities, whilst also providing access to attractive EIS and/or SEIS tax
reliefs (including 30%-50% income tax relief). It has a focus on early-stage UK
technology companies, and its principal sectors of interest are consumer internet
& mobile, enterprise software, and industries that are becoming more dependent
on technology, such as healthcare, education, finance and defence. Since its
launch in September 2014, it has invested in a portfolio of seven companies,
with more currently being completed. Investors tax forms are expected within
six months of investing in the fund. Investments come from a variety of sources
and we have relationships with several joint venture partners. In particular, we
are the preferred partner to the Defence, Science & Technology Laboratory
at Porton Down - a division of the Ministry of Defence - which provides us
with access to opportunities coming out of this group. The fund is managed by
Downing Ventures, a division of Downing LLP, and is led by Matt Penneycard,
who has been investing in this space for over ten years, both in the UK and the
US. Our team includes an individual based in the US, which is to the benefit of our
portfolio companies, many of whom seek to expand in that direction.
4 EXCITING EIS / SEIS OPPORTUNITIES

BROUGHT TO YOU BY INNVOTEC
Anglo Scientific EIS 2015
The seventh annual EIS Fund from the Innvotec / Anglo Scientific collaboration provides further opportunity for
private investors to invest behind the well regarded, specialist and dedicated team of technology entrepreneurs that is
Anglo Scientific, under a discretionary management agreement with Innvotec, one of the UKs longest established VCs
backingangloscientific
opportunities in the broad technology sector.
C R E A TING SOLU TIONS
Anglo Scientific has built a portfolio, all EIS qualifying, of highly promising tech-enabled companies and Anglo Scientific
2015 EIS, like the predecessor funds, provides the opportunity to invest in five or six of these companies.
Performance across the earlier funds is impressive, an average gain on portfolio cost of 77% equating to a notional IRR
across all Funds of 19%, with no fund being valued below cost.
Startup Funding Club SEIS 2015

The second annual SEIS Fund from the Innvotec / Startup Funding Club collaboration, the first having been deployed
across a well-diversified, fifteen company portfolio.
Startup Funding Club is one of the most successful boutiques working with companies seeking seed and early-stage
finance, especially those companies that own proprietary intellectual property (IP) capable of being exploited globally
and whose founders possess the stamina and knowhow to meet the challenge.
The Startup Funding Clubs network ensures that opportunities are sourced from many of the UKs best regarded
incubators and accelerators. Whilst the portfolio will have a technology-bias, it will also include product based
companies and those in the food sector.
Integral to the success of the Fund is a mentoring programme in support of the entrepreneurs.
Odyssey Mission SEIS 2015

UK based private investors have a novel opportunity to invest in the Innvotec-managed Odyssey Mission 2015 SEIS
Fund, a portfolio of early stage businesses led by Asian Entrepreneurs. Investors have the prospect of strong capital
appreciation whilst helping an affinity group and obtaining attractive personal tax reliefs in so doing.
The Fund is geared to providing start-up /early stage funding and mentoring support to the best of the next
generation of Asian graduate entrepreneur that wish to build their businesses in the entrepreneurial-friendly United
Kingdom, some of whom will require a Tier 1 graduate entrepreneur visa so to do.
The Odyssey Mission itself is a big project of which the SEIS Fund is the startpoint.
OION SEIS 2015
2015
SEIS
FUND
The OION 2015 SEIS Fund is an Innvotec-managed growth fund, providing private investors with an opportunity to
invest in a portfolio of early stage businesses located in Oxfordshire and its surrounds, whilst offering the prospect of
strong capital appreciation and at the same time accessing attractive personal tax reliefs.
The companies that will form the OION 2015 SEIS Fund will use the proceeds of investment to advance them on
their business growth curve and it is at these earliest stages of commercial exploitation that there is the potential to
generate significant capital appreciation.
The Fund benefits from the participation of Oxford Investment Opportunities Network (OION) in generating quality
dealflow and the provision of mentors to support the entrepreneurs.
For full details on any of the above EIS / SEIS Funds or any other information please contact Innvotec on:
Tel: +44 (0) 20 7630 6990
Email: info@innvotec.co.uk
Web: www.innvotec.co.uk
Issued and approved by Innvotec Limited, Business Design Centre, Suite 310, 52 Upper Street, Islington, London, N1 0QH
Innvotec Limited is a registered company in England & Wales. Registration Number: 2030086
Innvotec Limited is Authorised and regulated by the Financial Conduct Authority.
VA0115
Open Offers
EIS
SEIS
Open
Close
January 2015
N/A
T. 020 7873 2122

E. seis@jensonsolutions.com
www.jensonfundingpartners.com
EIS
Open
January 2015
SEIS
Close
Evergreen
T. +44 (0)845 512 1000

E. nicolajohnston@chfmedia.com
www.chfenterprises.co.uk
SEIS
EIS
Open
Close
01/11/2012
N/A
T. 01865 784 466

E. info@oxfordtechnology.com
www.oxfordtechnology.com
40
Jenson Funding Partners - SEIS & EIS Fund 3

We are pleased to follow-up our first two funds with a combined SEIS and EIS
Fund (Fund 3). Our offering allows investors to choose whether they want
to invest solely via SEIS or EIS or to split their funds across SEIS and EIS
investments. The Fund aims to target exciting new innovative and disruptive
technologies to be nurtured alongside existing investment opportunities that
require follow-on investment to fully exploit commercialization of a proven
business model. At Jenson we aim to offer these businesses far more than just
funding. To date, we have actively advised entrepreneurs to re-evaluate business
models, reduced projected costs and introduced potential executives, partners,
customers and suppliers as part of the value added service we provide. Further
we believe the addition of an experienced finance director to the management
team of Investee Companies, even on a part-time basis, will enhance returns. This
is why each investment is allocated a Jenson finance director a key differentiation
between ourselves and other SEIS and EIS providers. The combined SEIS and
EIS structure is designed to provide increased diversification as a portfolio
investment. The balance between capital growth, portfolio risk and time horizon
is maximised, whilst enhancing the tax advantages available.
CHF Enterprises
CHF Enterprises Ltd (CHF) presents an exciting and unique opportunity for UK
tax payers to invest in both SEIS and EIS qualifying media production companies,
whilst also benefitting from risk mitigation in the form of seed and traditional EIS
reliefs and Government backed Animation Tax Credits.
The company has a strong and proven track record: over the past 40 years,
Cosgrove Hall have produced iconic childrens programmes such as Danger
Mouse, Postman Pat, Roary the Racing Car and others, and CHF has a multi
BAFTA and International Emmy award winning creative team One of its recent
shows, Pip Ahoy! was funded via CHFs own in-house EIS offering and is now on
air on channel 5s Milkshake every weekday for 5 years, to great media acclaim.
The group has multiple revenue streams from Broadcast and License and
Merchandising sales with unlimited investment returns. All shows are produced
in the UK and qualify for the Governments Animation Tax Credits.
The Oxford Technology OT(S)EIS Fund

The Oxford Technology OT(S)EIS fund specialises in investing in early-stage and
start up science and technology companies, a field in which Oxford Technology
has had over 30 years of experience. The fund mainly invests in companies based
in or near to Oxford, often spun out of the University, and gets actively involved to
help the founders succeed.
The fund has invested in 13 companies so far in a wide range of sectors
from state of the art medical tools for cancer surgery, to mobile software, to
industrial scale machines for the creation of chemically pure metal powders.
The investments tend to be high risk, high reward, but an investor should not be
put off - the generous tax benefits of the SEIS scheme are designed for just this
type of investment. The scheme mitigates much of the risk, while simultaneously
multiplying the rewards.
We publish a quarterly report for the fund on our website, which contains full
details of all of the investments, and we recommend all those interested read it.
The fund is always open to investment.
Open Offers
SEIS
UP Business Accelerator SEIS and EIS Fund
Open
UP Business Accelerators are sited in Edinburgh and Manchester, home to

two of the UKs strongest universities in Informatics. Focused on techmedia
propositions, the UP Accelerator puts early stage companies through an
intensive programme aimed at significantly shortening the time taken to achieve
commercial traction. The fund, managed by Par Fund Management Limited,
provides a small installment of acceleration capital to each company admitted
to a cohort and then makes a larger investment in the pick of the businesses
graduating from the programme. The fund is currently open to elective
professional clients only.
UP Business Accelerators bring together an experienced core team of
individuals supported by corporate Enterprise Partners who together offer
cohort companies a rich blend of hands-on business experience, material and
intellectual support and, in the case of Enterprise Partners, potential customers,
partners or acquirors. Unlike many incubators and accelerators, the UP model
is based on alignment of interest, so rather than cohort companies using
investment proceeds to pay UP Business Accelerators for their participation in
the programme, they give up a small equity stake instead.
Tesseract Interactive SEIS Fund 5
Close
Now
Evergreen
T. 0131 556 0044

E. info@parequity.com
www.parequity.com
SEIS
Open
The Tesseract Interactive SEIS Fund 5 provides investors with access to

companies operating in the interactive entertainment sector. It is the 5th such
fund to be offered by Daedalus Partners, an experienced SEIS Fund manager with
over 17.5m of SEIS funds under management.
21/11/2014
Close
03/04/2015
The Tesseract funds have already invested in over 60 developers of applications

and services for mobile devices, online games and downloadable content for the
console/handheld market. It aims to achieve an attractive risk/reward profile
through a balanced blend of investments in high-growth, start-up companies
with potential for significant equity returns, and other investments in small
enterprises exploiting established franchises, IP and creative teams.
T. 020 7866 5452

E. info@daedalus-partners.com
www.daedalus-partners.com
Albion Ventures LLP - Albion VCTs Prospectus Top Up Offers 2014/2015

ALBION VENTURES LLP is one of the largest independent venture capital
investors in the UK, we have been managing investments in small unquoted
companies since 1996. Albion manages approximately 245 million across six
Venture Capital Trusts. We have a conservative investment strategy achieved
by investing in a combination of more stable asset-backed investments and a
lower level of investments in higher-growth companies. The portfolio which
includes healthcare, environmental, education and technology, ensures a wide
sector spread. We are delighted to offer investors this further opportunity to
acquire new shares in six Albion VCTs.
The Albion VCTs Prospectus Top Up Offers 2014/2015 are designed to provide
investors with:
Monthly tax-free dividend income of around 6% p.a.*
Compound capital growth option through Dividend Reinvestment Scheme
Experienced manager with strong track record
Investment into existing mature portfolio
Conservative investment strategy
*equivalent to approximately 8.5% on the net cost of investment after up-front tax relief at 30% and this only
applies if an investment is made in all 6 VCTs
VCT
Open
November 2014
Close
31/03/2015
Amount to be Raised: 25.5m
T. 020 7601 1850

E. smant@albion-ventures.co.uk
www.albion-ventures.co.uk
41
Open Offers
VCT
Open
November 2014
Close
04/04/2015
PUMA INVESTMENTS - PUMA VCT 11

Puma VCT 11 builds on the market-leading track record of previous VCTs. Puma
VCT 11 will adopt the same, proven investment strategy primarily investing
in established businesses in the form of ordinary equity together with senior
secured loans.
Strong Track Record: Puma VCTs I to V head their peer group for total return.
Puma VCT V, the latest VCT to close delivered a total return of 106.3p per share,
(equivalent to a 9.4% annual return) making it the highest return to date for a
limited life VCT.
T. 020 7408 4070

IHT
Open
Close
June 2013
Monthly
T. 020 7408 4070

IHT
Open
October 2014
Close
Open Ended
Dividends: Target average annual tax-free dividend of 5p per share commencing

from April 2017.
Five Year Life: It is envisaged that after 5 years, the Directors will propose a
special resolution for shareholders to vote on the process of winding-up the
Company. Investment Size: Minimum subscription level is 5,000.
PUMA INVESTMENTS - PUMA Heritage

Puma Heritages core focus is on secured lending. Its primary objectives are
to preserve capital and mitigate risk. Strategy: Conservative trading strategy
focused on secured lending. Flexibility: Choice of income or growth shares and
ability to switch between them. Directors: Three experienced Directors bringing
a multi-disciplinary approach.
Experienced Adviser: Puma Heritage has appointed Puma Investments as its
trading adviser. Aligned Interests: The interests of Puma Investments (the
trading adviser) and Shareholders are entirely aligned: Puma Investments will
not receive any performance fees and its annual advisory fees are only paid in
full if the minimum target annual return is paid in full. Liquidity: Twice yearly
opportunity to access capital (subject to terms set out in the Prospectus).
Subscription Amount: Minimum subscription of 25,000 with no maximum.
Inheritance Tax: It is intended that a subscription for shares in Puma Heritage
will benefit from relief from Inheritance Tax provided the shares have been held
for at least 2 years prior to and at the point of death.
PUMA INVESTMENTS - PUMA AIM INHERITANCE TAX SERVICE

Puma AIM Inheritance Tax Service is a discretionary service that seeks to
mitigate Inheritance Tax by investing in a carefully selected portfolio of AIM
shares. The Puma AIM Inheritance Tax Service is also available in ISAs.
Portfolio Service: A discretionary portfolio service that seeks to deliver long

term growth focusing on quality companies listed on AIM. Inheritance Tax: It
is intended that investors will benefit from relief from Inheritance Tax provided
investments are held for at least 2 years prior to and at the point of death.
Minimum subscription of 15,000 with no maximum.
T. 020 7408 4070
42
EIS Magazine January/Febuary 2015
Available in ISAs: Whilst ISAs are extremely tax efficient during the holders
lifetime, upon death ISA balances may be subject to a 40% IHT liability. Investing
in a portfolio of qualifying AIM stocks allows holders to mitigate Inheritance Tax
while still retaining the benefits of an ISA. ISA Transfers can be accepted from
existing providers as well as new investments.
Open Offers
IHT
Cocoon - The Cocoon Green Energy Solar Fund
Open
A solar energy investment opportunity designed to help reduce inheritance

tax liabilities through shares in a company that qualifies for Business Property
Relief. This means that your investment will receive a 100% exemption from
inheritance tax after just two years and could reduce the IHT payable on your
estate. The Fund also delivers an inflation proofed return of RPI* + 2.5% annually,
paid quarterly, whilst providing easy access to your investment (on 30 days
notice) if you need it through a substantial liquidity reserve. No fees or charges
are ever deducted from your investment, unlike every other major provider of
inheritance tax solutions. The investment is extremely secure and low risk with
returns are underpinned by long term, Government guaranteed, inflation linked,
subsidies and the sale of power in 10 + year contracts to major power companies.
This product is only suitable for investors receiving advice or which meet
Cocoons appropriateness test.
*RPI is the rolling 12 month average ONS published figure
Now
T. +44 (0)207 478 2800

E. info@cocoonwealth.com
www.cocoonwealth.com
IHT
TIME Investments TIME:Advance
Open
TIME:Advance is aimed at individuals looking to reduce their Inheritance Tax

(IHT) liabilities and offers 100% IHT relief in just two years, alongside a targeted
return of 3.5% per annum. Importantly clients retain access and control, so have
the option to withdraw a lump sum or set up regular withdrawals in the form
of an income. TIME:Advance focuses on capital preservation by investing in
asset backed businesses, with no debt which qualify for Business Property Relief
(BPR). The product is managed by an expert team, with a proven 19 year track
record of success in achieving BPR for investors.
April 2013
T. 020 7391 4747

E. questions@time-investments.com
www.time-investments.com
IHT
TIME Investments TIME:Corporate Trading Companies
Open
TIME:Corporate Trading Companies (TIME:CTC) is our bespoke Inheritance

Tax (IHT) solution for corporate investors, which boasts an impressive 19 year
track record of delivering IHT relief for investors. TIME:CTC is aimed at business
owners who have built up surplus cash in their business and could potentially
lose Business Property Relief and/or Entrepreneurs Relief. TIME:CTC focuses
on capital preservation by investing in asset backed businesses which qualify
for Business Property Relief (BPR). It targets an attractive 3.5% return and we
currently have more than 1,000 clients invested.
October 1996
T. 020 7391 4747

E. questions@time-investments.com
www.time-investments.com
43
Open Offers
IHT
Open
Close
Evergreen
Evergreen
T. 020 3195 3500

E. info@stellar-am.com
www.stellar-am.com
IHT
Open
Close
Evergreen
Evergreen
T. 020 3195 3500

www.stellar-am.com
IHT
Open
Evergreen
Close
Evergreen
T. 020 3195 3500

www.stellar-am.com
44
Stellar Asset Management Stellar Succession

Stellar Succession utilises Business Property Relief to provide 100% exemption from
IHT after just two years while enabling clients to keep control and ownership
of capital.
Each client becomes a sole shareholder of their own bespoke private limited trading
company, which allocates capital to a diversified portfolio of asset backed, Business
Property Relief qualifying trading activities including Forestry, Farming, Bridging
Finance, Hotels and Renewable Energy.
The service has a focus on capital preservation our trades within Stellar Succession
are securitised, non-correlated to main stream asset classes, UK based and we do
not use gearing.Each of our trades has a target return of 5% pa (net), returns are
uncapped and clients have the flexibility to opt for growth or income.
The service is managed and fully administered by Stellar on the behalf of every client
within a competitive and transparent cost structure.
We offer a unique, but optional insurance policy across our range of IHT products
to protect investors from any future loss of value. The policy provides investors and
advisers with peace of mind and ensures beneficiaries always receive the original
amount invested.
Stellar Asset Management Stellar AIM IHT Portfolios

Stellar AIM IHT Portfolios provides clients with a discretionary managed, diversified
portfolio of AIM listed companies with the option of a unique insurance policy to
protect investors from any future loss of value.
Each portfolio will be made up of AIM shares that qualify for Business Property
Relief, providing 100% IHT relief after just two years while enabling clients to keep
control and ownership of capital. Stellar AIM IHT Portfolios therefore creates a
straightforward IHT solution while offering potential for growth and easy access
& liquidity for those who wish to transfer existing stocks and shares or have cash
holdings. The investment strategy exercises a well diversified, disciplined stock
selection policy which focuses on long-term capital growth, and risk mitigation.
This process entails the detailed analysis and selection of companies that must
exhibit a market value supported by tangible assets or yield. The average market
capitalisation of companies in our portfolios is c180 million and many are
household names.
We offer a unique, but optional insurance policy across our range of IHT products
to protect investors from any future loss of value. The policy provides investors and
advisers with peace of mind and ensures beneficiaries always receive the original
amount invested.
Stellar Asset Management Stellar AIM IHT ISA

Stellar AIM IHT ISA provides clients with a diversified portfolio of AIM listed
companies in a tax free ISA wrapper with the option of a unique insurance policy to
protect investors from any future loss of value.
Our AIM IHT ISA is one of the most tax-efficient investment opportunities available
on the market. It is free from income tax, capital gains tax and, after just two years,
inheritance tax.Each portfolio will be made up of AIM shares that qualify for Business
Property Relief, providing 100% IHT relief after just two years while enabling clients
to keep control of capital, without losing any of the benefits of their existing ISA.
Stellar AIM IHT ISA therefore provides individuals with a straightforward IHT
solution, offering potential for growth and easy access, for existing ISA transfers and
new ISA investment.
The investment strategy exercises a well-diversified, disciplined stock selection policy
which focuses on long-term capital growth and risk mitigation.
We offer a unique, but optional, insurance policy across our IHT products to protect
investors from any future loss of value. The policy provides investors and advisers
with peace of mind and ensures beneficiaries always receive the original amount
invested, creating the UKs only fully insured ISA with IHT relief.
Open Offers
BPR
Oxford Capital Estate Planning Service
Open
The Oxford Capital Estate Planning Service is an investment which, if held for at
least two years and still held at death, can be used to shelter part of an
individuals estate from Inheritance Tax. The Estate Planning Service provides
a range of investment options, targeting capital growth of 3%-5% per annum.
Should their circumstances change, investors can request access to part or all of
their capital, by asking Oxford Capital to sell their underlying shares.
Investors in the Estate Planning Service will acquire shares in unquoted trading
companies. Managed by Oxford Capitals infrastructure investment team, these
trading companies will make equity investments in, and loans to, companies
which in turn will own and operate revenue-generating infrastructure assets,
such as renewable energy installations. The investors shares should qualify as
Business Property, and therefore beeligible for 100% relief from Inheritance Tax
through Business Property Relief, if held for the requisite period.
Now
Close
Evergreen
T. +44(0)1865 860 760

E. info@oxcp.com
www.oxcp.com
Tax Efficient Investing for HNW Clients
A Year-End Adviser Seminar on EIS/VCT and BPR Investments

from IFA Magazine and EIS Magazine
CPD accredited
Birmingham. Hyatt Regency

Tuesday 24th February 2015
10.30am - 1.30pm
London. The Capital Club

Thursday 26th February 2015
10.30am - 1.30pm
Both of these seminars will explore the possibilities for HNW investors of all types, and will explore EIS/SEIS, VCT,
BPR and SITR investments with an impressive panel of expert speakers. Lunch Included.
Registration is free, full details at http://tinyurl.com/no5dogd
45
Start with an
Exit Strategy
Its All About the Exit, You Know. Guy Tolhurst, Managing Director of
Intelligent Partnership, Shows How Investors Can Benefit from Rolling Up EIS
Investments and Stacking Exits for Income
In this article were going to

examine the possibility of
re-investing the gains from EIS
investments in other EIS offers, and
using exit focused EIS investments
to try and build a tax-free source of
annual income for the future. This
investment idea initially appeared
in our 2014 EIS Industry Report, the
spreadsheet we used to calculate
the returns is available to IFAs on
request from research@intelligentpartnership.com
Year 1
A
B
C
Our Methodology
For our calculations we looked
at a hypothetical strategy where
the investor has a surplus 10,000
annually and has used (or nearly
used) their lifetime allowance within
their pension and their annual ISA
allowance. Clearly we are thinking
about wealthier investors here perhaps nearing retirement age and
mortgage free home owners.
By investing the annual 10,000
surplus into EIS schemes with an exit
focus, the capital can be recycled into
10,000.00
13,000.00
10,000.00
10,000.00
16,900.00
13,000.00
10,000.00
16,900.00
13,000.00
16,
13,000.00
10,000.00
13,000.00
10,000.00
13,
10,000.00
H
POT
10,000.00
Initial Investment
46
another investment at exit. In our

simple example we have recycled the
capital after every three years and
assumed each investment returns 1.3 x
capital - although the spreadsheet we
compiled allows readers to experiment
with differing timeframes and levels
of return.
We implemented this strategy with
the surplus 10,000 a total of eight
times (Pots AH in the table below).
This means that the Pot A can be
crystallised in year 10 and the total
return of 21,970 can be taken as a tax
Start with an Exit Strategy
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free gain and the same can be done

with all the subsequent pots until year
17, providing a tax free annual income
potentially in the early years of
retirement when spending is highest.
More Complex Scenarios
Of course, in reality the initial
investment amounts are likely to
fluctuate as client circumstances
change: the level of returns will vary
greatly, EIS managers may take longer
to achieve an exit than planned at the
outset and advisers and investors may
work over differing timeframes. In the
spreadsheet weve included the ability
for readers to manipulate all of these
variables to explore more volatile, real
world scenarios.
We carried out similar research
with company returns set at levels
10
11
based upon NESTA research

(56% return less than cost,
35% return 1.5x cost and
9% return >10x capital) and
randomly distributed through
our scenario. As you would
expect, the income taken as
the investor starts to exit was
much more erratic, but still
almost always positive each year,
with some years providing significant
returns in the tens of thousands.
Weve distributed this range of returns
randomly across the 24 investments
the strategy calls for, but of course in
reality achieving higher returns earlier
would have a positive effect due to
compounding. EIS
12
13
14
15
16
17
Taking Profits As Income
21,970.00
21,970.00
,900.00
21,970.00
16,900.00
21,970.00
16,900.00
,000.00
21,970.00
16,900.00
13,000.00
21,970.00
16,900.00
13,000.00
21,970.00
16,900.00
21,970.00
Re-investing Gains
47
Invest in energy companies through an EIS.

Another bright idea from Octopus.
At Octopus were a big admirer of bright ideas. Thats why we love the Enterprise Investment Scheme (EIS), a
government-backed initiative which gives investors a number of ways to save on their tax bills. We also love the
investment potential of the UK energy sector, which is undergoing a huge transformation. So why not combine these
two bright ideas into one? We have. Its called Octopus EIS. To find out more, talk to your Business Development
Manager on 0800 316 2067 or visit octopusinvestments.com
Important Information
For professional advisers only and not to be relied upon by retail clients. This financial promotion has been issued by Octopus Investments
Limited which is authorised and regulated by the Financial Conduct Authority. Your capital is at risk and you may not get back the full amount
invested. Tax treatment depends on the individual circumstances of each investor and may be subject to change. Past performance is not a reliable
indicator of future results and any forecast is not a reliable indicator of future performance. The availability of tax reliefs also depends on the
investee companies maintaining their qualifying status. Octopus EIS invests into small unquoted companies which are likely to have higher volatility
and liquidity risk than shares quoted on the London Stock Exchange Official List. This promotion does not offer investment or tax advice and
as this product is not suitable for everyone we recommend you seek independent investment and tax advice before investing in our products.

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30. Open Offers

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46. Timing Your Exit

Guy Tolhurst, MD at Intelligent Finance, explains how the

schemes are rapidly gaining popularity. There are funds for

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Alternative Energy: Changes in April

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Digitising the Process

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