10 reasons to talk to your clients about EIS


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10 reasons to talk to your clients about EIS Tax-efficient investing is high on most people’s agendas. With unscrupulous tax avoidance coming under the public spotlight, the opportunity to achieve tax savings through a legitimate scheme that has the full support of the government and HMRC is invaluable. The Enterprise Investment Scheme (‘EIS’) provides such an opportunity. If you have not already started the EIS conversation, here are some reasons for doing so. 1. Reducing the costs of restructuring a portfolio For clients with established share portfolios, second homes or buy-to-let properties, reluctance to pay CGT on the realisation of assets can constrain their investment decisions. The ability to defer gains by using an EIS can help unlock these opportunities. Income tax relief may also be available. 2. Diversifying a client’s portfolio Where clients are investing in the traditional asset classes of cash, fixed interest, property and quoted equities, an EIS can provide valuable diversification and the opportunity for growth. As an EIS invests in unquoted companies, the returns are uncorrelated. 3. Offering a new strategy for retirement planning With pension funding limits set to become more restrictive, an EIS can supplement a client’s existing pension arrangements, diversifying at both an investment and product level. 4. IHT and CGT planning Clients can sometimes be deterred from estate planning by the prospect of having to pay CGT in order to achieve IHT savings. The ability to defer any capital gains, combined with freedom from IHT after two years, makes an EIS a valuable estate planning tool. 5. Tax-efficient profit extraction for business owners Many business owners choose to retain profit within their company rather than incur a tax liability on distribution. This resolves a short-term problem, but can lessen their ability to claim other tax reliefs available to business owners. An EIS can mitigate the personal income tax liability arising on payment of a dividend. 6. Helping non-domiciled clients who are resident in the UK invest tax-efficiently Individuals with unremitted foreign income and gains can invest in the UK through an EIS and receive a series of attractive tax benefits. 7. Increasing disposable income by reducing income tax liabilities Where a client is capital rich but would benefit from additional income, investing in an EIS can reduce their income tax liability by 30% of the amount invested. 8. Enabling the offset of capital gains against more recent losses If a client has made a capital gain in the last three years but has more recent losses they wish to utilise, an EIS may provide a helpful solution. By deferring the gain using an EIS, the losses can be set off against the deferred gain when it becomes chargeable on realisation of the EIS. 9. An opportunity to write incremental business The amount invested into an EIS will often be in addition to the other arrangements you are recommending, rather than the result of a client reprioritising their objectives. 10. Establishing and maintaining client relationships In a competitive market, if you are not having the conversation about EIS, there is always the chance that another adviser will.

How Oxford Capital can help We offer a number of EIS investments based around our two core strategies: ‘Growth Capital’ and ‘Infrastructure’. For further information on the Oxford Gateway EIS Portfolio and the Oxford Capital Infrastructure EIS please visit www.oxcp.com. If you would like to discuss any of these opportunities, please call us on 01865 860760 or email a member of the team.

James Faulkner [email protected]

Thomas Attwooll [email protected]

Simon Ruthers [email protected]

Winner: EIS Fund Manager of the Year in 2013

Finalist: Exit of the Year 2013

Winner: EIS Fund Manager of the Year in 2011

Finalist: Equity Gap Fund of the Year 2010

Finalist: EIS Fund Manager of the Year in 2010

Finalist: Equity Gap Fund of the Year 2009

Winner: EIS Fund Manager of the Year in 2007

Winner: Young Personality of the Year 2006

Winner: Investor of the Year in 2013

Winner: Venture Capital House of the Year 2013

Winner: Investor of the Year in 2012

Finalist: Venture Exit of the Year 2013 Finalist: Venture Capital House of the Year 2010 Winner: Venture Capital House of the Year 2005

Important information Please note, the underlying investments within an EIS are held in small UK companies. As such, there is a risk that any of these investments may not perform as hoped and in some circumstances may fail completely, so investors could lose some or all of their investment. This communication has been produced specifically for financial advisers, wealth managers and other professional advisers, rather than for private investors. This financial promotion is issued and approved by Oxford Capital Partners LLP (“Oxford Capital”) 201 Cumnor Hill, Oxford, OX2 9PJ. Authorised and regulated in the UK by the Financial Conduct Authority under number 585981. Applications for investment in the portfolios managed by Oxford Capital may be made only on the basis of, and using the application form contained in, the Information Memorandum for each product, copies of which are available from Oxford Capital. No reliance is to be placed on the information contained in this document in making any such application. This material is directed only at persons in the UK and is not an offer or invitation to buy or sell securities. This document is not an offer or invitation to invest in products managed by Oxford Capital nor does it solicit any such offer or invitation. Past performance is not a guide to future performance. An investment should only be made on the basis of the formal Information Memorandum of each fund. Your capital is at risk and you should not invest if you are not willing to bear this risk. Tax advantages are summarised based on current legislation, which may be subject to change in the future.

© 2013 OXFORD CAPITAL PARTNERS LLP