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The views and opinions expressed herein are those of the authors and do not necessarily reflect the views of LightTower Partners and its affiliates or employees. The information set forth herein has been obtained or derived from sources believed by the authors to be reliable. LightTower Partners does not make any representation or warranty, express or implied, as to the information's accuracy or completeness, nor does the author recommend that the attached information serve as the basis of any investment decision and it has been provided to you solely for informational purposes only and does not constitute an offer or solicitation of an offer, or any advice or recommendation, to purchase any securities or other financial instruments, and may not be construed as such.

15 Aug 2017

Unicorn AIM VCT Conference Call with Chris Hutchinson

Click the link below to listen to a recent conference call recording about Unicorn’s new £30m top-up offer for their awarding-winning AIM VCT.   The Unicorn team manages over £1 billion of assets, across a range of Funds, of which around £300 million is specifically invested in AIM-listed companies*. The Unicorn team therefore bring their […]

Click the link below to listen to a recent conference call recording about Unicorn’s new £30m top-up offer for their awarding-winning AIM VCT.

 

The Unicorn team manages over £1 billion of assets, across a range of Funds, of which around £300 million is specifically invested in AIM-listed companies*. The Unicorn team therefore bring their considerable experience and success in small cap investing to this offering.

To find out more about the new share offer, please click here or call our team on 020 7071 3940.

*Source: Unicorn Asset Management as at 30/06/17.

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9 Aug 2017

Jack Rose on Professional Adviser: Tax Efficient Calendar – Q1 and Q2

Jack Rose who is Head of Tax Efficient Products at LGBR runs through the first and second quarters, highlighting what advisers should do when and how best to avoid the end of tax-year rush. Click here to read the full post on Professional Adviser. For more information on the range of tax products that LGBR […]

Jack Rose who is Head of Tax Efficient Products at LGBR runs through the first and second quarters, highlighting what advisers should do when and how best to avoid the end of tax-year rush.

Click here to read the full post on Professional Adviser.

For more information on the range of tax products that LGBR Capital has to offer please click here or call 020 3195 7100.

 

 

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4 Aug 2017

Unicorn increases stake in AIM-listed Surface Transforms

The Unicorn AIM VCT has increased its stake in the company Surface Transforms plc, a carbon-ceramic braking manufacturer. Click here to view the whole article For more information on the Unicorn AIM VCT please click here or call 020 7071 3940.

The Unicorn AIM VCT has increased its stake in the company Surface Transforms plc, a carbon-ceramic braking manufacturer.

Click here to view the whole article

For more information on the Unicorn AIM VCT please click here or call 020 7071 3940.

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3 Aug 2017

Jack Rose: Tax-efficient investing calendar – Q3 and Q4

Head of tax-efficient investing at LGBR Capital, Jack Rose looks at the third and forth quarter of the year and highlights what investors should be thinking about when it comes to investing in EIS, VCT and IHT products and how to avoid the end of tax-year rush. Click here to view the whole article For […]

Head of tax-efficient investing at LGBR Capital, Jack Rose looks at the third and forth quarter of the year and highlights what investors should be thinking about when it comes to investing in EIS, VCT and IHT products and how to avoid the end of tax-year rush.

Click here to view the whole article

For more information on the range of tax products that LGBR Capital has to offer please click here or call 020 3195 7100.

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26 Jul 2017

Unicorn AIM VCT New £30m Share Offer – NOW OPEN

We are pleased to announce that the new £30m share offer for the Unicorn AIM VCT is now open. Last year’s £15m offer sold out in just 2 weeks, so we would recommend advisers act quickly. Click here for a copy of the Prospectus and Application Form. Click here for a recent review by Martin […]

We are pleased to announce that the new £30m share offer for the Unicorn AIM VCT is now open. Last year’s £15m offer sold out in just 2 weeks, so we would recommend advisers act quickly.

  • Click here for a copy of the Prospectus and Application Form.
  • Click here for a recent review by Martin Churchill (87/100).
  • Click here for the latest factsheet.

Unicorn’s AIM-focused VCT has generated market-leading capital performance and delivered consistent dividend growth since launch in 2001. Unicorn’s AIM VCT was voted ‘Best VCT’ at the 2016 Investment Company of the Year Awards.

The Unicorn team manages over £1 billion of assets, across a range of Funds, of which around £300 million is specifically invested in AIM-listed companies*. The Unicorn team therefore bring their considerable experience and success in small cap investing to this offering.

To find out more about the new share offer, please click here or call our team on 020 7071 3940.

*Source: Unicorn Asset Management as at 30/06/17.

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13 Jul 2017

Growth Investor Awards 2017 Finalist – Unicorn Asset Management

We are pleased to announce that Unicorn has been chosen as a finalist at the Growth Investor Awards 2017 for the ‘Best AIM Investment Manager’ category. Click here for a full list of finalists. To find out more about the range of tax products that Unicorn have to offer please click here or call 020 3195 7100.

We are pleased to announce that Unicorn has been chosen as a finalist at the Growth Investor Awards 2017 for the ‘Best AIM Investment Manager’ category.

Click here for a full list of finalists.

To find out more about the range of tax products that Unicorn have to offer please click here or call 020 3195 7100.

GIA 2017 Finalist Logo - Best AIM Investment Manager

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25 Apr 2017

LGBR Capital’s Jack Rose Looks at Considering Business Relief for IHT

As the value of estates continue to rise, a growing number of families will develop potential IHT bills, making effective estate planning, including business relief, an increasing priority. LGBR Capital’s Jack Rose looks into the problem and why business relief might be just one of the ways to help solve the problem. Click here to […]

As the value of estates continue to rise, a growing number of families will develop potential IHT bills, making effective estate planning, including business relief, an increasing priority. LGBR Capital’s Jack Rose looks into the problem and why business relief might be just one of the ways to help solve the problem.

Click here to view the whole article

To find out more about the range of tax products that LGBR Capital have to offer please click here or call 020 3195 7100.

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25 Apr 2017

Unicorn AIM VCT – the quickest AIM VCT raise for 2016/17 tax year

With demand for VCTs rising, Wealth Club have conducted research on the 2016/17 tax year raise which showed that the Unicorn AIM VCT was the fastest raise among the AIM sector of VCTs. On top of this the Triple Point VCT stood out as a VCT that noticeably increased its fundraising velocity after announcing its […]

With demand for VCTs rising, Wealth Club have conducted research on the 2016/17 tax year raise which showed that the Unicorn AIM VCT was the fastest raise among the AIM sector of VCTs. On top of this the Triple Point VCT stood out as a VCT that noticeably increased its fundraising velocity after announcing its over-allotment facility.

Click here to see the whole article

To find out more about the range of tax products that LGBR Capital have to offer please click here or call 020 3195 7100.

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24 Apr 2017

Unicorn AIM IHT ISA – How to pass on ISAs after you’ve passed on

Chris Hutchinson, manager of the Unicorn AIM IHT & ISA Portfolio Service has recently been mentioned in an article on the Times as a potential fund to invest in for those looking to access AIM stocks. “This is a small fund but is run by one of the most successful smaller companies managers, Chris Hutchinson […]

Chris Hutchinson, manager of the Unicorn AIM IHT & ISA Portfolio Service has recently been mentioned in an article on the Times as a potential fund to invest in for those looking to access AIM stocks.

“This is a small fund but is run by one of the most successful smaller companies managers, Chris Hutchinson of Unicorn AIM venture capital trust.”

Click here to read the full article.

For more information about the service, please email us or call 020 7071 3940.

 

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24 Mar 2017

Jack Rose: Top 10 tips for picking an AIM manager

With a background of ever-growing IHT receipts, investing in AIM through an ISA can be a powerful planning option for the right person, LGBR Capital’s Jack Rose, offers investors and their advisers 10 tips on the subject. Click here to read the article For more information on the range of LGBR Capital’s tax efficient products […]

With a background of ever-growing IHT receipts, investing in AIM through an ISA can be a powerful planning option for the right person, LGBR Capital’s Jack Rose, offers investors and their advisers 10 tips on the subject.

Click here to read the article

For more information on the range of LGBR Capital’s tax efficient products please click here or call 020 3195 7100.

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7 Mar 2017

Triple Point Income VCT Conference Call

Triple Point Managing Partner, Ben Beaton provides an introduction to the newly launched £15m E Share Offer for Triple Point’s Income VCT plc as well as a detailed look at the underlying investment strategy which is focused on SME leasing for infrastructure and industrial support services. This will include an outline to Triple Point’s deal […]

Triple Point Managing Partner, Ben Beaton provides an introduction to the newly launched £15m E Share Offer for Triple Point’s Income VCT plc as well as a detailed look at the underlying investment strategy which is focused on SME leasing for infrastructure and industrial support services. This will include an outline to Triple Point’s deal flow and the exit opportunities for the VCT. For further information on the VCT,  please click here or call 020 7071 3910.

 

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2 Mar 2017

Seneca Partners Opens Second Managed Storage EIS Fund

Seneca Partners has closed its first Managed Storage EIS fund after it was fully subscribed and has opened a second fund to raise an additional £10m. Click here to see the whole article For more information on the Seneca Managed Storage Fund 2 click here or call 020 7071 3926.

Seneca Partners has closed its first Managed Storage EIS fund after it was fully subscribed and has opened a second fund to raise an additional £10m.

Click here to see the whole article

For more information on the Seneca Managed Storage Fund 2 click here or call 020 7071 3926.

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28 Feb 2017

Seneca Partners Opens Second Tax Offer Amid Sector Demand

With Tax-efficient investments, including Enterprise Investment Scheme (EIS) and venture capital trusts (VCTs) filling rapidly this tax year, Seneca Partners have opened the Managed Storage EIS Fund No.2.  In a recent article by Professional Adviser, LGBR Capital head of tax products Jack Rose has attributed the surge in sector demand to VCT rule changes, which mean management […]

With Tax-efficient investments, including Enterprise Investment Scheme (EIS) and venture capital trusts (VCTs) filling rapidly this tax year, Seneca Partners have opened the Managed Storage EIS Fund No.2. 

In a recent article by Professional Adviser, LGBR Capital head of tax products Jack Rose has attributed the surge in sector demand to VCT rule changes, which mean management buy-out strategies are now ruled out and investors must hold an investment for at least seven years to qualify for the tax savings. He said this has restricted the ability of many managers to raise large amounts of capital this tax year.

Click here to read the full article.

For more information about their second offering, please email seneca@lighttowerpartners.co.uk or call 020 7071 3926.

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20 Feb 2017

Jack Rose: 10 Top Tips For Tax-Advantaged Investing

With just over 6 weeks until the end of the tax year, Jack Rose, Head of Tax Products at LGBR Capital reveals his top 10 tips for tax – advantaged investing. Click here to see the whole article For more information on LGBR Capitals range of tax efficient products please click here or call 020 […]

With just over 6 weeks until the end of the tax year, Jack Rose, Head of Tax Products at LGBR Capital reveals his top 10 tips for tax – advantaged investing.

Click here to see the whole article

For more information on LGBR Capitals range of tax efficient products please click here or call 020 3195 7100.

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6 Feb 2017

Unicorn AIM VCT Offer Shuts In Record Time

Unicorn AIM VCT (‘the VCT’) has closed its latest £15 million offer, having been fully subscribed. Investors who missed out on the latest VCT offer can still access Unicorn’s AIM expertise via the Unicorn AIM IHT Portfolio Service. Since launch in 2001, Unicorn AIM VCT has delivered marketing-leading capital returns in the AIM-focused VCT sector […]

Unicorn AIM VCT (‘the VCT’) has closed its latest £15 million offer, having been fully subscribed. Investors who missed out on the latest VCT offer can still access Unicorn’s AIM expertise via the Unicorn AIM IHT Portfolio Service.

Since launch in 2001, Unicorn AIM VCT has delivered marketing-leading capital returns in the AIM-focused VCT sector and a consistently progressive dividend income stream to shareholders. In the period since launch in 2001, Net Asset Value per share has increased significantly, while shareholders have received approximately £43.2m in tax-free dividend distributions.

Unicorn AIM VCT is also currently the largest AIM-focused VCT in the market with net assets of approximately £160 million. By virtue of its substantial size, investors in Unicorn AIM VCT are able to access an established, diverse and strongly performing portfolio of investments.

Unicorn has been one of the leading institutional investors in the AIM market since its inception in 2000. It currently manages over £250 million in AIM stocks across its range of UK OEICS and the AIM-focused VCT.

Chris Hutchinson, Manager of the Unicorn AIM VCT commented, “There has been a very positive response from Advisers to this latest Offer, which was fully subscribed within two weeks of opening. Despite the current political and economic uncertainty across the globe, I am confident we can continue to find attractive investment opportunities for the VCT to complement the existing portfolio of profitable, cash generative and dividend paying companies that should thrive over the longer term.”

For more information on the range of award winning Unicorn products click here or call 020 7071 3940.

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25 Jan 2017

Fundraising for VCT’s up 53% Year on Year

Fundraising levels for venture capital trusts (VCTs) are up 53% in the 2016/17 tax year to date compared with levels in the previous year. As at 31 December 2016, £169.5m had been raised into VCTs in contrast to the £110.8m that was raised in VCTs by the same point the previous year, LGBR Capital’s Jack […]

Fundraising levels for venture capital trusts (VCTs) are up 53% in the 2016/17 tax year to date compared with levels in the previous year. As at 31 December 2016, £169.5m had been raised into VCTs in contrast to the £110.8m that was raised in VCTs by the same point the previous year, LGBR Capital’s Jack Rose explains why advisers shouldn’t leave VCT business to the last moment.

Click here to see the whole article

For more information on LGBR Capital’s range of VCTs please click here or call 020 7071 3940.

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24 Jan 2017

LGBR Capital’s Jack Rose: How To Spot A Good VCT Manager

In the most recent tax planning article with Professional Adviser, LGBR Capitals Jack Rose discusses how to spot a good VCT manager and what you need to look for before investing. Click here to see the whole article For more information on LGBR Capitals range of tax efficient products please click here or call 020 […]

In the most recent tax planning article with Professional Adviser, LGBR Capitals Jack Rose discusses how to spot a good VCT manager and what you need to look for before investing.

Click here to see the whole article

For more information on LGBR Capitals range of tax efficient products please click here or call 020 7071 3940.

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23 Jan 2017

Chris Hutchinson Takes Part in Investment Week Podcast on Tax Efficient Investing

Unicorn AIM VCT Senior Fund Manager, Chris Hutchinson recently took part in a podcast with Investment Week in which he discussed the investment objective of the Unicorn AIM VCT, the attractions of AIM as well as explaining what Unicorn do to help educate investors. Click here to listen to the whole podcast For more information […]

Unicorn AIM VCT Senior Fund Manager, Chris Hutchinson recently took part in a podcast with Investment Week in which he discussed the investment objective of the Unicorn AIM VCT, the attractions of AIM as well as explaining what Unicorn do to help educate investors.

Click here to listen to the whole podcast

For more information on the Unicorn AIM VCT please click here or call 020 7071 3940.

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19 Jan 2017

The Seneca Managed Storage EIS Fund Scores 85/100 From Allenbridge

I am pleased to announce that Seneca’s Managed Storage EIS Fund has scored a strong 85/100 in Allenbridge’s latest EIS review. “Seneca’s history in the managed storage sector, and evidence collected to ascertain the likelihood of hitting Seneca’s targets, as well as the background of the operating partner, give us confidence that Seneca’s investment target […]

I am pleased to announce that Seneca’s Managed Storage EIS Fund has scored a strong 85/100 in Allenbridge’s latest EIS review.

“Seneca’s history in the managed storage sector, and evidence collected to ascertain the likelihood of hitting Seneca’s targets, as well as the background of the operating partner, give us confidence that Seneca’s investment target of 1.2x is both achievable and realistic”

Click here to read the full report.

For more information, please email us or call 020 7071 3926.

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19 Jan 2017

Unicorn AIM VCT £15m – Now Open

I am pleased to announce that the new £15m share offer for the Unicorn AIM VCT is now open. Last year’s £10m offer sold out in just 2 1/2 weeks, so we would recommend advisers act quickly. Click here for a copy of the Prospectus and Application Form Click here to listen to recent conference call with manager […]

I am pleased to announce that the new £15m share offer for the Unicorn AIM VCT is now open. Last year’s £10m offer sold out in just 2 1/2 weeks, so we would recommend advisers act quickly.

  • Click here for a copy of the Prospectus and Application Form
  • Click here to listen to recent conference call with manager Chris Hutchinson in which he talks about the VCT

The Unicorn team are experts in AIM investing, managing over £260m* across a range of tax efficient products and funds.

To find out more about the Unicorn AIM VCT please click here or call 020 7071 3940.

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3 Jan 2017

Unicorn Announce VCT Top Up

Unicorn Asset Management have announced that it will launch a £15m offer for its AIM VCT imminently. The previous offer for the VCT last year was fully subscribed within three weeks. For more information on the upcoming AIM VCT offer please call 020 7071 3940 or email sales@lgbrcapital.com.

Unicorn Asset Management have announced that it will launch a £15m offer for its AIM VCT imminently. The previous offer for the VCT last year was fully subscribed within three weeks.

For more information on the upcoming AIM VCT offer please call 020 7071 3940 or email sales@lgbrcapital.com.

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3 Jan 2017

LGBR Capital’s Jack Rose on ‘Ask a Money Expert’

LGBR Capital’s Jack Rose has responded to questions put to ‘Ask a Money Expert’ for The Daily Telegraph on investing with in the AIM market. Click here to see the whole article For more information on LGBR Capital’s range of tax planning products please call 020 3195 7100 or email sales@lgbrcapital.com.

LGBR Capital’s Jack Rose has responded to questions put to ‘Ask a Money Expert’ for The Daily Telegraph on investing with in the AIM market.

Click here to see the whole article

For more information on LGBR Capital’s range of tax planning products please call 020 3195 7100 or email sales@lgbrcapital.com.

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16 Dec 2016

Conference Call With Chris Hutchinson – Unicorn AIM VCT

Please click the link below to listen to the recent conference call with manager Chris Hutchinson on his soon to be launched, £15m offer Unicorn AIM VCT. For more information on the range of tax efficient products that LGBR Capital have to offer please click here or 020 3195 7071.

Please click the link below to listen to the recent conference call with manager Chris Hutchinson on his soon to be launched, £15m offer Unicorn AIM VCT.

For more information on the range of tax efficient products that LGBR Capital have to offer please click here or 020 3195 7071.

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13 Dec 2016

What VCTs Do and How To Use Them – by LGBR Capital’s Jack

As Venture Capital Trusts turn 21, LGBR Capital’s Jack Rose explains to FT Adviser what they do, the tax benefits that they offer to investors and how they can sit in a investor’s portfolio. Click here to see the whole article For more information on the range of tax efficient products that LGBR Capital have […]

As Venture Capital Trusts turn 21, LGBR Capital’s Jack Rose explains to FT Adviser what they do, the tax benefits that they offer to investors and how they can sit in a investor’s portfolio.

Click here to see the whole article

For more information on the range of tax efficient products that LGBR Capital have to offer please click here or 020 3195 7071.

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1 Dec 2016

How To Spot A Good VCT Manager by LGBR Capital’s Jack Rose

Jack Rose, Business Development Director for LGBR Capital has spoken to FT Adviser about how to spot a good VCT manager and how to understand VCTs and the tax reliefs and investment structures surrounding them. Click here to see the whole article For more information on VCTs or LGBr Capitals range of tax efficient products […]

Jack Rose, Business Development Director for LGBR Capital has spoken to FT Adviser about how to spot a good VCT manager and how to understand VCTs and the tax reliefs and investment structures surrounding them.

Click here to see the whole article

For more information on VCTs or LGBr Capitals range of tax efficient products please click here or call 020 3195 7100.

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25 Nov 2016

Unicorn AIM VCT Wins The Investment Week VCT Award

We are pleased to announce that the Unicorn AIM VCT has won the VCT award in Investment Week’s ‘Investment Company of the Year Awards 2016.’ The Investment Company of the Year Awards aim to recognise and reward excellence in closed-ended fund management. The judging panel for the awards is made up of some of the […]

We are pleased to announce that the Unicorn AIM VCT has won the VCT award in Investment Week’s ‘Investment Company of the Year Awards 2016.’

The Investment Company of the Year Awards aim to recognise and reward excellence in closed-ended fund management.

The judging panel for the awards is made up of some of the UK’s leading researchers and investors in investment trusts and closed-ended companies, as well as several senior board members with many years’ experience in the industry.

Click here to see the full list of winners.

For more information on the Unicorn AIM VCT, click here or call us on 020 7071 3940.

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23 Nov 2016

What The EIS Offers And How It Works By Jack Rose

In the latest in his series of tax-planning articles for Professional Adviser, Jack Rose (Head of Tax Products at LGBR Capital) offers an introduction to the Enterprise Investment Scheme, looking at how it works, how to access it and the types of client it could suit. The Enterprise Investment Scheme (EIS) is a government initiative […]

In the latest in his series of tax-planning articles for Professional Adviser, Jack Rose (Head of Tax Products at LGBR Capital) offers an introduction to the Enterprise Investment Scheme, looking at how it works, how to access it and the types of client it could suit.

The Enterprise Investment Scheme (EIS) is a government initiative launched in 1994, designed to encourage investment by individuals into early-stage companies as an alternative source of funding to more traditional sources of capital.

To balance the increased risk of investing in smaller companies, there are some attractive tax breaks offered by the government. Although more than 20 years old, the EIS heritage actually stretches back to 1981 through its original guise of the Business Start-up Scheme (‘BSUS’) and then latterly the Business Expansion Scheme (‘BES’) in 1983, before finally becoming as we know it as today in 1994.

Since then, more than 24,500 companies have received investment through the scheme and more than £14bn has been raised. Last year alone, according to the April 2016 HMRC & National Statistics Report, more than £1.6bn was raised under the EIS scheme.

Unlisted or AIM-listed companies can apply to HMRC to become “EIS qualifying”, which requires meeting several investment criteria, including:
* They must undertake a “qualifying trade” – certain trades, such as dealing in securities/financial instruments and forestry and farming are excluded;
* They must have fewer than 250 employees, unless it is a ‘knowledge intensive’ business;
* The company must not be controlled by another company;
* The company’s gross assets must not exceed £15m before the investment, or £16m post investment; and
* An investee company cannot be older than seven years, unless it is a knowledge intensive business.

It is also important to note that, despite often being referred to as ‘EIS funds’, they are not collective investment schemes. An investor in an EIS will be the owner of shares in its underlying companies, rather than owning shares or units in a fund.

Given the investment criteria above, EIS companies are smaller and less liquid than larger, listed investments. To compensate investors for the extra risk taken, EIS offer a number of generous tax incentives, including:
* 30% upfront income tax relief (subject to £1m investment in any tax year and provided shares are held for a minimum of three years);
* 100% inheritance tax relief after two years;
* 100% capital gains deferral for the life of the investment;
* Tax-free growth; and
* Loss relief.


Ways To Access EIS Companies

Investors can invest in single EIS companies or an EIS ‘fund’. The reason for the inverted commas is that, despite the name, an EIS ‘fund’ is structured as a discretionary management service in which a manager with expertise in unquoted companies will use their knowledge to select a portfolio of EIS-qualifying companies.

Within each of these categories there is a multitude of different investment strategies covering multiple sectors:

* Single EIS company: Investment is made directly into just one EIS company, meaning investors take on the risks/rewards of the company, which lacks diversification. There is, however, often more clarity on the company’s investment objectives and the timings on the EIS tax certificates.

* EIS portfolio service: The asset manager invests into a basket of what they believe to be robust EIS-qualifying companies, usually under a discretionary management agreement with the investor. They are usually ‘evergreen’ – meaning they are always open for investment. Each client portfolio can be slightly different, depending on the timing of investment, and is usually made up of between five and 10 underlying companies. Tax relief on cash is available only from the date of investment into each underlying EIS company, however, not the date of the initial investment into the service.

* EIS funds: These vary in structure – for instance they can be under a discretionary management agreement or structured as an alternative investment fund. The asset manager invests into a basket of investee companies that fit the fund’s investment mandate. The fund will target a specific amount of capital and will close once it reaches capacity. The number of investments will vary within the fund, depending on the investment criteria. As with the portfolio service, tax relief on the investment is available only from the date of investment into each underlying EIS company.

* Approved EIS funds: These are like the EIS funds mentioned above – with the addition that the fund has received advanced assurance from HMRC that it will qualify for EIS status before an investor’s investments are made. The manager must invest 90% of the money within 12 months of raising capital to qualify but it does ensure EIS tax relief will be on the full amount at the initial date of investment into the approved fund.


For What Types Of Client Are EIS Suitable?

First, while it is important to consider the tax-planning implications for a client, to use the ever popular tax cliché – ‘the tax tail should not wag the investment dog’. EIS should be considered on their investment merits rather than simply as a way of accessing tax reliefs. Given their focus on smaller, less liquid companies and therefore their increased risk, EIS will not be suitable for every client.

It is also important to mention EIS legislation has been through a period of transition and change over the last year or two, which has altered the landscape considerably. The removal of energy-generating assets, such as solar, and the seven year rule have restricted and tightened what investment managers are able to invest in. This has affected managers’ deal flow and, correspondingly, the products available in the market for investors.

For financial advisers looking to recommend EIS investments, it is important to research both the specific strategy and the wider market thoroughly. There are a number of independent sources such as The Tax Efficient Review, The Tax Shelter Report and MiCap, which provide a lot of useful research and information in this regard.

The 30% upfront tax relief makes EIS attractive for clients looking to offset a large income tax liability. The maximum that can be claimed is £300,000 in any one tax year.

For those who have made a capital gain that is taxable, this can be deferred by investing the gain in an EIS. This will be deferred for the duration of the EIS investment. The capital gain liability can be from three years prior, or one year post the EIS investment. It should, however, be noted this is the date from investment into qualifying EIS companies – something to watch for when using an EIS Service.

Since EIS also qualifies for 100% inheritance tax exemption after two years, it can also play a role in clients’ estate planning. If an investor holds the EIS investment at the time of death, the deferred capital gains liability is also removed along with the investment being zero-rated for inheritance tax.

Jack Rose is head of tax products at LGBR Capital

Click here to read the whole article.

For further information on LGBR’s range of tax products, please click here or contact our team by emailing info@lighttowerpartners.co.uk or by calling us on 020 3195 7100.

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27 Oct 2016

What VCTs Do And How To Use Them By Jack Rose

Consider investment merits first, then tax. VCTs turned 21 this year but how many advisers are offering them the key to the door of client portfolios? In the latest in his series of tax-planning articles, Jack Rose takes a closer look at the product. The UK government established venture capital trusts (VCTs) 21 years ago […]

Consider investment merits first, then tax.

VCTs turned 21 this year but how many advisers are offering them the key to the door of client portfolios? In the latest in his series of tax-planning articles, Jack Rose takes a closer look at the product.

The UK government established venture capital trusts (VCTs) 21 years ago in a bid to encourage investment into smaller UK businesses. The generous tax benefits offered are intended to compensate for the increased risk associated with investing in smaller, less liquid companies.

From their introduction in 1995 to the end of the 2015/16 tax year, VCTs have raised more than £6bn, according to the AIC – along the way providing important support and funding to the UK’s SME sector. Despite a number of rule changes last year – and as the following graph shows – VCTs continue to enjoy strong demand, with just under £500m raised in the 2015/16 tax year.

Annual VCT sales since launch (including indication of tax relief changes)

Source: AIC

Historical performance has also been good, with the average total return for a VCT investment of £100 to 31 December 2015 growing to £160 over five years and £187 over 10 years, according to the AIC.

In many ways, VCTs are similar to investment trusts, albeit with additional investment rules in order to qualify for tax reliefs. VCTs are public limited companies and are listed on the London Stock Exchange. Investors subscribe for shares in a VCT, which will then look to invest into a portfolio of ‘qualifying’ companies.

To be VCT-qualifying, underlying companies must meet several investment criteria including:
* Companies must be unquoted or AIM-listed
* The maximum value of a company’s gross assets (before VCT investment) is £15m
* The company cannot have more than 250 employees (before VCT investment)

At least 70% of a VCT’s cash must be invested in qualifying companies within three years. The remaining 30% can be invested in non-qualifying investments, such as cash, listed equities, debt and investment funds.

As a result of the numerous rules to which VCTs must adhere in order to qualify for tax breaks, it is important to choose an experienced manager. We will be going into more detail on what to look for in a VCT manager in our next article.

VCTs have a number of attractive tax benefits for investors. Initial investments can qualify for 30% income tax relief, subject to a maximum of £200,000 per investor per tax year and a five-year minimum holding period. Furthermore, dividends paid are tax-free and there is no capital gains tax to pay when the VCT is sold.

While all VCTs invest into smaller UK companies, the market tends to split managers into four main types:

* Generalist VCTs: As the name suggests, these invest in a general portfolio of companies across the smaller and private equity universe, often across multiple sectors.

* AIM VCTs: These focus on companies listed on the AIM market. These are the only listed companies (daily priced) that ‘qualify’ under VCT rules. AIM has been around since 1995 and is now a mature exchange, with more than £90bn raised and a total of some 1,100 companies currently listed.

* Specialist VCTs: These focus on companies in a specific sector, such as renewable energy, leisure, media or technology, where the manager believes they have an edge.

* Limited life or planned exit VCTs: While similar to generalist VCTs, these tend to focus on lower-risk, lower-return companies with the main objectives of capital preservation and providing liquidity as soon as possible after the minimum five-year holding period.

The Role Of A VCT In An Investor’s Portfolio

Before going any further, it is worth stressing that financial advisers need to analyse the VCT market thoroughly before recommending them. The AIC website provides a lot of useful research and information in this regard. There are also other good sources of independent information such as The Tax Efficient Review, Intelligent Partnership’s VCT Industry Report and The Tax Shelter Report.

What type of clients are VCTs suitable for? First, VCTs should be considered on their investment merits rather than simply as a way of accessing tax reliefs. Given their focus on smaller, less liquid companies, VCTs will not be suitable for every client.

It is also worth noting, however, that given the VCT industry has been running for more than 20 years, it is possible to find VCTs with large and mature portfolios. Many of these have started to develop the hallmarks and traits of a smaller companies investment trust and, if investors can gain access to a top-up offer within one of these portfolios, it can help potentially to lower the investment risk.

Given the changes to pension legislation over the last couple of years, there seems to an ever-increasing demand from investors for VCTs that have capped out on either the lifetime limit or their annual contributions. With their upfront income tax relief at 30% and tax-free dividends, you can see the attraction for people using them as a supplementary pension-planning option – building a diversified portfolio of different VCTs over time, to sit alongside their pension.

As Chris Hutchinson, the manager of the £150m Unicorn AIM VCT, puts it: “VCTs are sometimes mistakenly considered as being solely focused on achieving returns through capital growth but, in reality, many VCTs deliver attractive returns via regular tax-free dividend payments.”

Jack Rose is business development director for tax products, LGBR Capital

Click here to see the whole article

For more information on LGBR Capitals range of tax products please click here or call 020 3195 7100.

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18 Oct 2016

EIS Magazine – Exclusive Seneca Partners Event – Lords Cricket Ground – 20th Oct

Click here to read EIS Magazine’s article, featuring Seneca Partner’s exclusive event at the Lords Cricket Ground, on Thursday 20th October. If you would like to attend, please click here to register and for further information. Alternatively, you can email us or call our team on 020 7071 3926.

Click here to read EIS Magazine’s article, featuring Seneca Partner’s exclusive event at the Lords Cricket Ground, on Thursday 20th October.

If you would like to attend, please click here to register and for further information.

Alternatively, you can email us or call our team on 020 7071 3926.

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18 Oct 2016

EIS Magazine – Chance To Invest In Managed Storage Sector

EIS magazine announces the launch of the Seneca Managed Storage EIS Fund. Created to give investors the opportunity to invest in the managed storage sector, and at the same time benefit from EIS tax reliefs, the fund is managed by Seneca Partners, the SME specialist. Click here to read the full article. For further information […]

EIS magazine announces the launch of the Seneca Managed Storage EIS Fund.

Created to give investors the opportunity to invest in the managed storage sector, and at the same time benefit from EIS tax reliefs, the fund is managed by Seneca Partners, the SME specialist.

Click here to read the full article.

For further information about the fund, please email us or call our team on 020 7071 3926.

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18 Oct 2016

GrowthInvest Relaunches Alternative Investment Platform For Advisers

Professional Adviser posts about the relaunch of Alternative investment platform GrowthInvest, who has refocused its proposition to provide financial advisers with access to tax-efficient investments on a single online platform. The purpose of rebranding and relaunching is to “better reflect the wider range of products and services available” on its platform. Click here to read […]

Professional Adviser posts about the relaunch of Alternative investment platform GrowthInvest, who has refocused its proposition to provide financial advisers with access to tax-efficient investments on a single online platform.

The purpose of rebranding and relaunching is to “better reflect the wider range of products and services available” on its platform.

Click here to read the full article.

To register for their upcoming events, click here.

For further information, please email us or call our team on 020 7071 3945.

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12 Oct 2016

Professional Adviser – Seneca Partners Launches Managed Storage EIS Fund

Seneca Partners are delighted to announce the launch of a new EIS fund; the Seneca Managed Storage EIS Fund.  Seneca Partners director and co-founder Ian Currie says –  “We believe the underlying fundamentals of the managed storage sector, combined with the inherent asset backing of the storage sites has significant appeal…The sector benefits from low […]

Seneca Partners are delighted to announce the launch of a new EIS fund; the Seneca Managed Storage EIS Fund

Seneca Partners director and co-founder Ian Currie says –  “We believe the underlying fundamentals of the managed storage sector, combined with the inherent asset backing of the storage sites has significant appeal…The sector benefits from low fixed operating costs, recurring revenues and low customer concentration and has also enjoyed increasing demand and yields in recent years.”

Click here to read the full article by Professional Adviser.

For more information about the fund, please email our team or call us on 020 7071 3926.

 

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11 Oct 2016

Seneca Partners Launches Managed Storage EIS Fund

Seneca Partners, the SME specialist with a focus on helping companies to grow, which already manages more than £30m in the Seneca EIS Portfolio Service, has launched the Seneca Managed Storage EIS Fund. The Fund provides investors with the opportunity to invest in the managed storage sector, whilst also benefiting from the tax reliefs afforded […]

Seneca Partners, the SME specialist with a focus on helping companies to grow, which already manages more than £30m in the Seneca EIS Portfolio Service, has launched the Seneca Managed Storage EIS Fund. The Fund provides investors with the opportunity to invest in the managed storage sector, whilst also benefiting from the tax reliefs afforded by the Enterprise Investment Scheme.

Seneca Partners has been invested in the storage sector since 2014, working alongside the management team responsible for operating its current portfolio of storage assets. This team has identified the opportunity to acquire a number of freehold and/or long leasehold storage facilities to further expand the estate of storage assets that it manages.

The Seneca Managed Storage EIS Fund provides investors with the ability to invest in this expansion whilst benefiting from both the tax reliefs available under EIS and the underlying asset value represented by the freehold or long leasehold managed storage facilities.

Ian Currie, Co-Founder and Director, Seneca Partners commented; “We believe that the underlying fundamentals of the managed storage sector, combined with the inherent asset backing of the storage sites has significant appeal. The sector benefits from low fixed operating costs, recurring revenues, low customer concentration and has also enjoyed increasing demand and yields in recent years*. With our management team having already reached heads of terms in relation to the first three target sites in which the Fund is looking to invest, we have targeted an initial fundraise of £10m.”

 

* Source: Cushman & Wakefield annual industry survey 2016

Seneca Partners Limited is authorised and regulated by the Financial Conduct Authority (reference 583361).

EIS and BR investment may not be suitable for all potential Investors.  Investments in unquoted companies generally carry a high degree of risk and may be of a long term and illiquid nature. The companies in which the Seneca Services and Funds invest will often not be quoted on any regulated market and, accordingly, there will not be an established or ready market for any such shares and the Portfolio or Fund Manager may experience difficulty in realising them (for value or at all). Seneca Corporate BR is an Unregulated Collective Investment Scheme (“UCIS”) and may only be promoted to persons who are sufficiently experienced and sophisticated to understand the risks involved in investing in such schemes, and who satisfy certain other criteria, as defined by the Financial Conduct Authority.

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27 Sep 2016

Why You Should Not Ignore Tax-Advantaged Investments by Jack Rose

In the first of a new series of tax-planning articles for Professional Adviser, Jack Rose puts the case for tax-advantaged investments such as enterprise investment schemes and venture capital trusts Enterprise investment schemes (EISs), venture capital trusts (VCTs) and business relief products are by no means new in the market place. Business relief – which […]

In the first of a new series of tax-planning articles for Professional Adviser, Jack Rose puts the case for tax-advantaged investments such as enterprise investment schemes and venture capital trusts

Enterprise investment schemes (EISs), venture capital trusts (VCTs) and business relief products are by no means new in the market place. Business relief – which until recently was known as Business Property Relief or ‘BPR’ – was first introduced in the 1976 Finance Act. For their part, EISs replaced the old Business Expansion Schemes in 1994 while VCTs were introduced in 1995.

While figures for assets raised in business relief schemes are hard to come by, the last tax year saw more than £2bn raised across EISs and VCTs. According to HMRC and AIC data respectively, since inception, EISs have attracted more than £14bn and VCTs more than £5.6bn into the UK small and medium-sized enterprise (SME) sector.

Despite all three structures having an established market with a 20-year-plus track record – and even though recent changes in both government legislation and pension rules have made the investment case even more compelling – many financial advisers still do not include them in their tax-planning arsenal.

The introduction of the so-called ‘GAARs’ (general anti-abuse rules) and ‘DOTAS’ (disclosures of tax avoidance schemes) regimes has been described as the ‘kiss of death’ for aggressive tax avoidance schemes – as demonstrated by a number of high-profile cases in the tabloids over recent years.

This, in combination with the Retail Distribution Review’s ‘whole of market’ legislation, is now leading many advisers to look towards government-approved EISs, VCTs and business relief products for their tax-planning needs.

Why Does The Government Give Tax Breaks?

EISs, VCTs and business relief each offer a number of distinct tax incentives allowing them to fulfil different requirements in an investor’s portfolio. VCTs, for example, offer tax-free dividends, meaning they may be more suitable to an investor looking to maximise income.

A golden rule of investment, however, is that you do not get anything for free. The government’s generous tax incentives associated with these vehicles are designed to offset the risk of investing in smaller, unquoted or AIM-listed companies. Furthermore, investments must meet certain criteria – both at the investor level (such as minimum holding periods to qualify) and the underlying investee company level (such as a maximum revenue size or number of staff).

The increased risk nature of these strategies means they are not suitable for everybody. For the right investor, though, they can form an important and complementary part of their overall portfolio.

The Catalysts Behind A Growing Market

Aside from the changes in government legislation outlined above, there are a number of other factors driving the growth in the market.

First, changes in pension rules – particularly, restricting annual contributions for additional-rate taxpayers and reducing lifetime contributions to £1m – have restricted the tax-planning options for high earners, pushing advisers towards alternative and complimentary pension planning investments, and VCTs in particular.

The tax-free dividends offered by VCTs, alongside no capital gains tax on gains, make them an attractive alternative source of tax-free income, which can complement a traditional pension portfolio.

Second, the dynamics for SME asset-raising through EIS and VCT structures continue to be favourable. The best part of a decade on from the 2008 financial crisis, the market for SME funding remains well below pre-2008 levels. With traditional sources of funding difficult to secure, demand for funding via EIS and VCTs far outstretches supply. This has created a positive environment for EIS and VCT managers with a number of potential deals in which to deploy new cash.

Finally, inheritance tax (IHT) continues to be an ever-growing problem for advisers and their clients, exacerbated by rising property prices. The result is that a record number of people’s estates are due to fall outside the current nil-rate band of £325,000.

Even with the addition of the main residence nil-rate band that is due to kick in from next April, the Office for Budget Responsibility forecasts IHT revenues are expected to rise by nearly 11% a year for the next four years – and to the highest level as a share of the UK economy since the 1970s. Last year, HMRC took a record £4.6bn from IHT receipts and this is forecast to rise to almost £5bn for this current tax year.

With the nil-rate band remaining at its current level until 2020/21, business relief strategies offer a simple way for investors to reduce their IHT liabilities after just two years. Furthermore, such strategies offer a flexibility, control and timescale that traditional estate planning options, such as gifting or trusts, often cannot.

Conclusion

There are a diverse range of EIS, VCT and business relief products and managers available across multiple investment strategies and asset classes. The markets for each of these tax-efficient structures is long-established and provides billions of pounds in vital investment each year into the UK SME sector.

Each structure provides a different range of tax-planning benefits, which can be tailored to the client’s investment objective. These structures can form a valuable part of an adviser’s tax-planning arsenal – and demand is only set to grow.

In future articles, we will examine EIS, VCTs and business relief strategies in further detail, including their key features, how best to use them in a client’s portfolio and what to look for in a good manager.

Jack Rose is head of tax products at LGBR Capital

Click here to see the whole article

For more information on LGBR Capitals range of tax products please click here or call 020 3195 7100.

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26 Sep 2016

How AIM is a Stockpicker’s Market by Jack Rose in YourMoney

Despite both the tax benefits and the high growth opportunities that come with investing in AIM stocks, it is still an area avoided by those worried about the potential pitfalls. The Alternative Investment Market (AIM) is one of those markets that divide opinion. Many private investors believe in the high growth investment opportunities to be […]

Despite both the tax benefits and the high growth opportunities that come with investing in AIM stocks, it is still an area avoided by those worried about the potential pitfalls.
The Alternative Investment Market (AIM) is one of those markets that divide opinion. Many private investors believe in the high growth investment opportunities to be found on AIM and appreciate the generous tax benefits available from investing in such stocks.

However, the majority of investors still avoid AIM because of the all too regular horror stories surrounding individual company failures and the pretty abysmal headline performance of the AIM Index over the past 20 years.

So which is right? 

The short answer is both views have valid points.

The poor performance of AIM is well documented. Since inception in 1995 the AIM Index has returned -1.6% on an annualised basis; hardly stellar returns. Then there are the stories of high profile failures like Quindell and African Minerals, as well as concerns over the lack of regulatory oversight within the market.

It is true that the regulation and listing requirements for companies seeking a listing on AIM is less onerous than those for companies seeking a main stock exchange listing. For instance, unlike a full listing companies are not required to produce financial records for at least the past three years nor do they need a minimum market capitalisation amongst other things.

But there is a far more positive side to the AIM story that deserves to be heard too. Part of the rationale behind the less onerous regulatory framework was to create a more flexible environment in which smaller, less mature companies could raise capital. Since its launch over 20 years ago the AIM market has helped over 3,500 companies to raise capital through listing on the index. Whilst many other junior markets have failed, AIM has continued to grow from representing just 10 companies at inception to over 1,100 today.

AIM continues to be supported by the UK government, in that it clearly recognises the stimulus AIM provides in employment creation and capital funding.

As a result, tax benefits remain attractive to private investors. Despite recent European Union imposed legislation; certain constituents of the Index still qualify for the government’s tax-advantaged legislation (for VCTs and EIS), while the abolition of stamp duty and allowing investors to access AIM through their ISA has helped to attract a broader range of investors and their capital to the market.

For those investors willing to do the work, AIM presents an opportunity to find an investment with the potential for significant returns. Many of the companies listed on AIM do not have the same level of research and broker coverage that is afforded to companies listed on the mainstream markets. It is a market of opportunity and risk, and for investors willing to diligently sift through the whole market there are real nuggets to be found.

Success stories such as Numis and Abcam are just a couple of examples of hidden gems that can be uncovered if you know how to look for them. Numis has a market cap of circa £300m and has returned well over 7,500% since it first listed.

“Abcam is a great example of how well the AIM can work for profitable, high growth, high quality businesses. Abcam is a producer and marketer of quality protein research tools. These tools enable life scientists to analyse cells at a molecular level, which is essential in a wide range of fields including drug discovery, diagnostics, and basic research. Abcam is a profitable and highly cash generative business with a leading position in a growing niche market, a strong record of organic growth and an experienced management team,” says Chris Hutchinson, manager of the Unicorn AIM VCT.

He adds: “We follow a rigorous investment process and apply strict criteria when researching new businesses. This approach allows us to uncover some of AIM’s hidden gems and, perhaps more importantly, helps us to avoid the failures. From £57m at the point of investment, Abcam has grown to become a £1.6bn business and crucially it is still listed and thriving on AIM.”

What is clear is that despite being able to point to success stories such as Numis and Abcam, the number of failures outweighs the successes on AIM.

For private investors with limited resources to correctly assess the opportunities, the risks of making a potential error are greatly increased. Clearly the most effective investment scenario for AIM is to delegate responsibility to a professional fund manager with the expertise, experience and resources to identify opportunities on behalf of their investors, thereby helping to mitigate some of the risk.

Professors Dimson and Marsh summarise it nicely: “Everyone says AIM is a stockpicker’s market, but what they mean is that there are extremes of performance – both on the downside and the upside….the best people equipped to sort the wheat from the chaff are the professional investors”.

Jack Rose is head of tax products at LGBR Capital

Click here to see the whole article

We are running a series of AIM Masterclasses across the UK in the upcoming months. For more information or to register, please click here or call our team on 020 3195 7100. 

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12 Sep 2016

LGBR’s Jack Rose : Is There An IHT Bubble On AIM?

Jack Rose, who is head of our tax products here at LGBR, has written a blog for YourMoney.com, addressing the potential risk of IHT bubbles on the AIM market. This is in response to the fast paced growth and attraction the AIM market has seen, especially for inheritance tax mitigation purposes. Click here to read […]

Jack Rose, who is head of our tax products here at LGBR, has written a blog for YourMoney.com, addressing the potential risk of IHT bubbles on the AIM market. This is in response to the fast paced growth and attraction the AIM market has seen, especially for inheritance tax mitigation purposes.

Click here to read the full blog post

Please click here to more information on our tax products or feel free to call our tax team on 020 3195 7100.

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6 Sep 2016

Unicorn AIM VCT Revealed As Finalist For 2016 Investment Co. Of The Year Awards

We are pleased to announce that the Unicorn AIM VCT has been revealed as a finalist for the 2016 Investment Company of the Year Awards this November. Hosted by Investment Week, the awards will reward excellence in closed-ended fund management, judged by a panel made up of some of the UK’s leading researchers and investors in […]

We are pleased to announce that the Unicorn AIM VCT has been revealed as a finalist for the 2016 Investment Company of the Year Awards this November. Hosted by Investment Week, the awards will reward excellence in closed-ended fund management, judged by a panel made up of some of the UK’s leading researchers and investors in investment trusts and closed-ended companies.

Click here to see the full list of finalists

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1 Sep 2016

LGBR Capital Hosts Series Of AIM Masterclasses Around The Country

LGBR Capital will be hosting a range of seminars across the UK in the coming months that have been designed to introduce and educate advisers on the AIM market and tax efficient products that can be used alongside them. Click here to see the Portfolio Adviser Article Click here for a full list of date […]

LGBR Capital will be hosting a range of seminars across the UK in the coming months that have been designed to introduce and educate advisers on the AIM market and tax efficient products that can be used alongside them.

Click here to see the Portfolio Adviser Article

Click here for a full list of date sand venues 

For more information please call 020 7010 3910.

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5 Aug 2016

3 Year Birthday Of The IHT-Free ISA

Exactly 3 years ago on the 5th August 2013, IHT-free ISAs were introduced, prompting  a significant change in the ISA’s history. We have a number of IHT mitigation products to suit your needs which you can view here. If you have any further questions, please email us or call our tax team on 020 7071 […]

Exactly 3 years ago on the 5th August 2013, IHT-free ISAs were introduced, prompting  a significant change in the ISA’s history.

We have a number of IHT mitigation products to suit your needs which you can view here.

If you have any further questions, please email us or call our tax team on 020 7071 3910.

 

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2 Aug 2016

Chris Hutchinson Shows How AIM Can Make You Money

Investing in AIM companies can often be a risky business as the index comprises mainly of small and start-up businesses but Chris Hutchinson, manager of the Unicorn Outstanding British Companies Fund and the Unicorn AIM VCT and AIM IHT/ISA Portfolio Service, explains that by applying his investment strategy he has been able to pick some […]

Investing in AIM companies can often be a risky business as the index comprises mainly of small and start-up businesses but Chris Hutchinson, manager of the Unicorn Outstanding British Companies Fund and the Unicorn AIM VCT and AIM IHT/ISA Portfolio Service, explains that by applying his investment strategy he has been able to pick some quality companies for his portfolios that have delivered impressive returns.

Click here to see the whole article

For more information on the award-winning range of Unicorn funds please click here or call 020 3195 7100.

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11 Jul 2016

Why Brexit May Be A Boon For Tax Efficient Products

An article from YourMoney.com has recently explained why Brexit may actually be welcomed by the the tax efficient funds industry. Researchers have shown that changes to trade bodies could allow more capital to flow into small and medium sized businesses, which would result in a boon for the tax-advantaged schemes, job creation and hopefully by extension […]

An article from YourMoney.com has recently explained why Brexit may actually be welcomed by the the tax efficient funds industry. Researchers have shown that changes to trade bodies could allow more capital to flow into small and medium sized businesses, which would result in a boon for the tax-advantaged schemes, job creation and hopefully by extension the UK economy.

Click here to read the whole article

At LGBR, we have several IHT products that can help you avoid this liability which you can check out here.

For further information, email our tax team or call us on 020 3195 7100.

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4 Jul 2016

LGBR Capital Have Won ‘Third Party Marketer Of The Year’ Again!

We are proud to announce that we have won ‘Third Party Marketer Of The Year’ at Investment Week’s 2016 Marketing and Innovation Awards last week for the second year running. Click here to see the full list of winners. For any further information on our services, please email our team or call us on 020 7071 […]

We are proud to announce that we have won ‘Third Party Marketer Of The Year’ at Investment Week’s 2016 Marketing and Innovation Awards last week for the second year running.

Click here to see the full list of winners.

For any further information on our services, please email our team or call us on 020 7071 3910.

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12 May 2016

Tax Planning Products To Avoid The Sting Of Inheritance Tax

The Telegraph has recently published an article exploring the topic of Inheritance Tax (IHT), how it is calculated and the importance of IHT planning. In fact, The Office of Budget Responsibility has forecasted that 40,100 bereaved families will face tax on their inheritance for the 2015/16 tax year – and that figure will reach 45,100 in […]

The Telegraph has recently published an article exploring the topic of Inheritance Tax (IHT), how it is calculated and the importance of IHT planning. In fact, The Office of Budget Responsibility has forecasted that 40,100 bereaved families will face tax on their inheritance for the 2015/16 tax year – and that figure will reach 45,100 in 2016/17.

Click here to access the article

At LGBR, we have several IHT products that can help you avoid this liability which you can check out here.

For further information, email our tax team or call us on 020 3195 7100.

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3 May 2016

London Businesses Join Forces To Save The High Street – SEED EIS Platform

SeedEIS Platform investee company PocketHighStreet has joined forces with a growing army of businesses on a shared mission to revive the high street, in the wake of both BHS and Austin Reed collapsing into administration last week. SeedEIS Platform provides access to tax efficient investment opportunities for professional investors and intermediaries. Dan Rodwell, SeedEIS Platform […]

SeedEIS Platform investee company PocketHighStreet has joined forces with a growing army of businesses on a shared mission to revive the high street, in the wake of both BHS and Austin Reed collapsing into administration last week. SeedEIS Platform provides access to tax efficient investment opportunities for professional investors and intermediaries.

Dan Rodwell, SeedEIS Platform Managing Director, said “Many of the investee businesses on the SeedEIS Platform are successful for their ability to be innovative and forward thinking. PocketHighStreet, is jumping into action in the wake of this big news on the High Street.”

PocketHighStreet promotes local shops and everything in stock today across London’s most popular online newspapers, city guides, business directories, blogs, mobile apps, social influencers, marketplaces and more.

From today, online and local shopping will converge like never before, empowering the bricks and mortar high street to fight back at scale. The ammunition is simple – products in stock in local shops registered with pockethighstreet.com will be available for one hour delivery or ‘click & collect’ in minutes and discoverable across a wide range of digital publishers. Any local shop or digital publisher can register for free and join the movement at pockethighstreet.com.

Alex Schlagman, CEO at PocketHighStreet added; “We’re in the middle of the most transformational period in the history of retail. For local shops to stay competitive in the connected digital age, we need to empower every local shopkeeper and put the digital high street at everyone’s fingertips.

“Shopping has changed forever. When I see something I want online it’s sourced via my local high streets and in my hands in minutes.”

For more information on the SEED EIS Platform please click here or call 020 3195 7100.

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1 Apr 2016

LGBR’s Jack Rose Discusses Dip In VCT Fund Raising for 2015/16 Tax Year

LGBR Business Development Director, Jack Rose speaks to Professional Adviser about the dip in VCT fund raising for the 2015/15 tax year and outlook for the year ahead. Click here to view the whole article For more details on LGBR’s range of tax products please click here or call 020 3195 7100.

LGBR Business Development Director, Jack Rose speaks to Professional Adviser about the dip in VCT fund raising for the 2015/15 tax year and outlook for the year ahead.

Click here to view the whole article

For more details on LGBR’s range of tax products please click here or call 020 3195 7100.

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11 Mar 2016

Support for AIM Seen As Positive Move

With Chancellor George Osbourne allowing AIM stocks to be held in ISAs back in 2013, FT Advisor looks at how this along with various other announcements have had a positive impact on AIM. In April 2014 the Chancellor also announced that stamp duty would be abolished on the transfer of AIM companies, which Chris Hutchinson, manager […]

With Chancellor George Osbourne allowing AIM stocks to be held in ISAs back in 2013, FT Advisor looks at how this along with various other announcements have had a positive impact on AIM. In April 2014 the Chancellor also announced that stamp duty would be abolished on the transfer of AIM companies, which Chris Hutchinson, manager of the Unicorn Aim VCT and AIM IHT Portfolio Service, described as “a major positive initiative introduced by the chancellor”.

Click here to read more

For more information on Unicorn’s Aim VCT and AIM IHT Portfolio Service click here or call 020 3195 7100.

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11 Mar 2016

Tilney Bestinvest Rank Unicorn’s Chris Hutchinson as Top 10 Fund Manager

Tilney Bestinvest have compiled their list of top 100 Fund Managers and have ranked Unicorn Asset Management, Senior Fund Manager, Chris Hutchinson as number 10 on their list. Click here to see the full list For more information on the award winning range of Unicorn Funds please click here or call 020 3195 7100.

Tilney Bestinvest have compiled their list of top 100 Fund Managers and have ranked Unicorn Asset Management, Senior Fund Manager, Chris Hutchinson as number 10 on their list.

Click here to see the full list

For more information on the award winning range of Unicorn Funds please click here or call 020 3195 7100.

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2 Mar 2016

Unicorn AIM VCT £10 million offer closes

Unicorn AIM VCT (‘the VCT’) has closed its latest £10 million offer, having been fully subscribed. Investors who missed out on the latest VCT offer can still access Unicorn’s AIM expertise via the Unicorn AIM IHT Portfolio Service. The Service is also available via ISAs giving investors the opportunity for tax-free income and growth alongside […]

Unicorn AIM VCT (‘the VCT’) has closed its latest £10 million offer, having been fully subscribed. Investors who missed out on the latest VCT offer can still access Unicorn’s AIM expertise via the Unicorn AIM IHT Portfolio Service. The Service is also available via ISAs giving investors the opportunity for tax-free income and growth alongside 100% mitigation from IHT, after a minimum holding period of two years.

Unicorn has been one of the leading institutional investors in the AIM market since its inception in 2000. It currently manages over £250 million in AIM stocks across its range of UK OEICS and the AIM-focused VCT.

The VCT has continued to provide regular tax-free dividend income for investors. A dividend of 6.25 pence per share was paid on 19 February 2016, bringing total dividends paid to investors since launch in 2001 to over £43 million. The VCT also holds substantial reserves, which are available for future dividend distribution.

Despite earlier uncertainty, 2016 looks like it will be a positive tax season, as a recent LGBR Capital report on the industry outlines:

‘Recent headlines regarding EU intervention and renewables have done nothing to dampen demand and even the fears regarding a short-term supply crunch would appear to be overblown. Despite worries that this year’s fund-raising season could have dropped significantly compared with last year’s £429 million in VCT fund raising, and taking into account some major names either having forsworn any top-ups this year or leaving it very late, it looks likely that the total raised in the current tax year will be less than 10% down on the 2014/15 figure.’ Efficiency savings: adjusting to the new tax-advantaged investment landscape

Chris Hutchinson, Manager of the Unicorn AIM VCT commented, “We continue to see attractive opportunities in the AIM and smaller companies sector. At present, the existing portfolio of investee companies continues to develop and prosper. Because of the new rules, inevitably we will be looking at slightly earlier stage businesses than has been the case historically, however I am confident that we will continue to unearth compelling investment opportunities.”

Tax free investment for ISA owners

UK investors, attracted by the twin benefits of tax-free income and growth, had a total of £470 billion invested in ISAs in the 2013/14 tax year.* However, many investors do not realise that ISAs form part of their estate for inheritance tax (IHT) purposes – and with more than 25% of ISA investors aged 65+*, this represents a real and growing IHT problem.

The Unicorn AIM IHT Portfolio Service is ISA-qualifying and offers a simple solution. Investors can transfer their existing ISA portfolios into the Service, retaining all ISA tax benefits and potentially qualifying for 100% IHT relief after only two years. The Service offers an Income Portfolio option (as well as a Growth Portfolio option), which aims to provide a tax-free dividend income circa 3.5% per annum (paid quarterly) as well as IHT mitigation after two years.

* Source: HM Revenue and Customs, April 2015.

This press release does not constitute investment, legal, tax or other advice nor is it to be relied on in making an investment or other decision. This press release is not a solicitation, offer or recommendation to acquire or dispose of any investment or to engage in any other transaction. Unicorn Asset Management Ltd is authorised and regulated by the Financial Conduct Authority.

For more information please click here or call 020 3951 7100.

 

NOTES TO EDITORS:

Unicorn Asset Management

Unicorn Asset Management was established in 2000 and is an independently owned and managed company. It specialises in investing in UK small and mid-cap companies, AIM and fledgling markets.

Unicorn operates a team based approach to investment management and its experienced, committed and well-resourced investment team has over 100 years’ of combined experience.  Unicorn is focused on being the ‘best not the biggest’ and its funds aim to deliver long term outperformance. Unlike many investment firms, Unicorn is majority owned by its directors, the management team and the founder’s family, providing further incentive to help ensure that the funds deliver consistently strong performance.

Unicorn manages in the region of £1 billion in a range of funds designed to satisfy a variety of investor requirements, including UK Income, UK Growth, UK Smaller Companies, an investment trust and an AIM focused VCT.

Chris Hutchinson, Director & Senior Fund Manager

Chris is the lead manager of Unicorn AIM VCT and has been a key member of the Unicorn Investment Committee since he joined the firm in 2005. Prior to joining Unicorn, Chris was a Fund Manager at Montanaro Investment Managers for over eight years where he specialised in UK smaller companies.

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29 Feb 2016

LGBR Business Development Director, Jack Rose On Rule Changes To Tax-Advantaged Investing

Our LGBR Business Development Director of our tax team, Jack Rose is featured on an article by Investment Week based on rule change effects announced last year which bring to an end tax relief for renewables. Click here to read the whole article  

Our LGBR Business Development Director of our tax team, Jack Rose is featured on an article by Investment Week based on rule change effects announced last year which bring to an end tax relief for renewables.

Click here to read the whole article

 

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26 Feb 2016

SMEs Will Benefit From Tax Relief Changes, Confirms New Report From LGBR Capital

LGBR Capital – which works in partnership with investment managers at the forefront of the sector to develop and distribute tax efficient products to UK investment intermediaries – says its new report has revealed that changes to the rules guiding tax-advantaged investing, combined with recent government moves to bring to an end tax relief for […]

LGBR Capital – which works in partnership with investment managers at the forefront of the sector to develop and distribute tax efficient products to UK investment intermediaries – says its new report has revealed that changes to the rules guiding tax-advantaged investing, combined with recent government moves to bring to an end tax relief for renewables, will see the sector turn to earlier-stage companies, according to VCT and EIS managers and commentators.

The new rules announced in the summer budget* alongside the final ending of the energy investment opportunity announced in the March budget, mean that funds and investors across VCTs, EIS, and SEIS will be forced to move up the risk scale to find companies to invest in.

Quoted in the report – ‘Efficiency savings: adjusting to the new tax-advantaged investment landscape’ – Chris Hutchinson, director and senior fund manager at Unicorn Asset Management said that because of the new rules “inevitably we will be looking at slightly earlier-stage businesses than has been the case historically”.

Tax-advantaged balancing act

Jack Rose, business development director at LGBR, points out that the tax-advantaged balancing act should be viewed as a see-saw between the investment managers and the government, with the latter attempting to cajole investors into bridging the finance gap that exists for SMEs while at the same time the managers seek to trim risk as much as possible.

“All legislation in this area is effectively a process by which the government of the day subtly – or sometimes not so subtly – shifts the balance of the rules while the managers will always work within them to try and find the best investment for their clients,” he says.

In the VCT arena, the new rules were deemed to have the greatest effect in the generalist sector where fund managers have been more reliant on MBOs. But fears that fund-raises across the sector would fall well short of last year appear to have been overblown, as more recent news from other VCT managers suggests that the figure for cash raised will come somewhere close to last year’s figure of £429m.

Risk reward – raising capital to grow

It was the tax relief that lay behind the enthusiasm for renewables and which ultimately proved to be too successful in drawing in investors’ cash. Ian Battersby, business development director at SME specialists Seneca Partners, says the problems the government had with renewables was foreseeable. “It’s not difficult to see why HMRC have removed them from eligibility criteria as their clear direction with EIS reliefs is to ensure they are targeted at companies seeking to raise capital in order to grow,” he says.

Nervousness regarding how investors should view tax-advantaged investment is common to the manager and commentators as much as it is to the government and the tax authorities. “HMRC are clear in not wanting to see EIS used as a tax mitigation tool,” says Battersby. “The tax reliefs are there for investors who are willing to take the heightened risk of providing capital to help companies to grow.”

“We do not focus on the tax breaks,” says Hutchinson from Unicorn. “If you look at a fund like ours with £130m of assets today it has all the hallmarks of a mainstream UK smaller companies investment trust, it just happens to be a VCT with all the tax advantages associated with that. But it’s sold on its investment merit not on the tax advantages.”

A more settled outlook

The managers and advisors also agreed that the sector can likely enjoy a period of stability for the foreseeable future. “The industry will need some time to adapt to the latest changes and so we’d be surprised if further significant changes were proposed in the short- to medium-term,” says Sarah Wadham, director general of the EIS Association. “Both the EIS and VCT industry continue to engage with the Treasury, HMRC and policymakers both in the in the UK and the EU to ensure the schemes work as effectively as possible.”

Click here to see the full report

About the report

Efficiency savings: adjusting to the new tax-advantaged investment landscape has been commissioned by LGBR Capital to delve into the issues raised by recent regulatory developments with regard to tax-efficient investments. Its author, Scott Longley, talks to market participants and commentators to gauge opinion of what these specific measures mean for the industry and asks how they will affect the investment decisions throughout the sector. It also looks forward to ask whether we have reached a level of regulatory stability and questions what this means for the funds and their investors.

* The new rules announced in the summer budget mean that companies that receive tax-efficient investment must in most cases be less than seven years’ old, can receive no more than £12m from tax-advantaged sources in their lifetime, and funds can no longer back management buyouts (MBOs) and some other asset-backed deals.

NOTES TO EDITORS:

LGBR Capital

LGBR Capital, which was founded in 2012, works in partnership with experienced, quality investment managers to develop and distribute financial products to investment intermediaries in the UK. Our tax division brings advisers a range of solutions from investment managers at the forefront of the sector, with capability covering VCT, EIS, SEIS, BPR and IHT.

Scott Longley

The report’s author, Scott Longley, has been a journalist covering the personal finance industry and other industry sectors since the early noughties. He has worked for a number of publications including Bloomberg Money and Investment Week and writes regularly on the tax-advantaged investment sector.

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Disclaimer

In order to view the information on the LightTower Partners website (lighttowerpartners.co.uk) (the “Website”), you must accept the terms and conditions set out below (these “Terms”) and our separate Terms of Use. These Terms create a binding legal agreement between us. For your own protection and benefit, please read these Terms carefully before starting to use this section of the Website. During each visit to this section of the Website, you are responsible for being familiar with, and are bound by, the then current version of these Terms. If you do not agree to these Terms, please refrain from using the Website. By clicking “Accept” below and accessing the information and material available on the Website, you accept these Terms.

IMPORTANT NOTICE: For legal reasons the contents of the Website cannot be made available to US residents. These materials and any products described herein are not being offered or targeted to US persons or to US residents and access by them is prohibited.

This section is only for UK regulated financial advisers, wealth managers and others regulated by the Financial Conduct Authority.
This section is not intended for, and must not be accessed by, investors who would be classified as retail clients under MiFID. If you are in any doubt as to whether you would be deemed to be a ‘professional client’ or ‘eligible counterparty’, please seek professional advice and refrain from accessing this section until such advice has been obtained.

By clicking ‘I accept’ you confirm that you are an FCA authorised financial intermediary, you also confirm that:
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I confirm that:

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  • I will not make an investment in an Investment Product, or advise another to do so, if the promotion of the Investment Product to the type of investor I represent is prohibited;
  • I recognise that the information provided on this Website is for information purposes only and is not a solicitation of an investment;
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