View more on these topics

CIVs to be sold through IFAs

The Chancellor has announced plans to launch a new community investment vehicle aimed at encouraging investment into Britain’s most deprived areas.

There will also be range of enhancements to Venture Capital Trusts and Enterprise Investment Schemes, as well as an extension of the Film Tax Relief scheme.

The new CIV is one of a number of possible tax incentive schemes to come from the Treasury’s Enterprising Communities project, announced in this week’s budget and is likely to be distributed to private investors through IFAs.

The product is still subject to consultation but, if launched, would be similar to an Enterprise Zone Trust which invests in property in run down areas. However, CIVs may cover a region rather than individual properties or businesses.

The new products are also likely to have a minimum holding period of five years to discourage premature disinvestment.

EIS and VCT regulations were also relaxed to encourage more investment companies to adopt the schemes. EIS managers will see a reduction in the amount of money which they have to invest within the first 12 months, while a similar reduction will apply to the amount VCT managers have to invest in qualifying companies within the first three years.

EIS companies will now also be permitted to float before three years, without losing investors tax reliefs. This may encourage more companies to become involved in EIS schemes.

Chairman of the Venture Capital Association David Thorp says: "This is all helpful tinkering. It means that people are still talking about these schemes and trying to make them more accessible."

Recommended

Scottish Friendly Assurance cuts bonus rates

Scottish Friendly Assurance is reducing bonus rates on its with-profits plans, blaming low inflation and low interest rates.The reversionary bonus for 2001 is down 0.75 per cent to 1.75 per cent of the sum assured plus 4.25 per cent of previously undeclared bonuses, from 2.5 per cent plus 5 per cent in 2000. The reversionary […]

Sway appoints digital media director

Sway is appointing David Hall as director, digital media. Hall was formerly managing director of Real Time Multimedia, and has worked in digital communications marketing for 20 years.In his new role at Sway, Hall will be developing live and on demand internet media to the financial services sector. Sway is developing the capability to deliver […]

Julian Gibbs

Scottish Widows is issuing a new tranche of its extra income and growth plan with improved protection. The first two plans raised more than £345m and I expect the new plan to be even more successful. It offers an income of 10.25 per cent a year or 33 per cent growth over three years. It […]

&#39Let product providers invest more in IFA firms&#39

Product providers should be allowed to invest in IFA firms, which would solve many of the financial problems facing them says the UK&#39s biggest life office. Norwich Union sales and marketing director Peter Hales sees a problem of under-capitalisation in the IFA sector. He believes the FSA should relax regulations which stop providers taking bigger […]

Sub-Saharan Africa Near-Term Outlook

By Paul Caruana-Galizia, Neptune Economist

Sub-Saharan Africa’s economic renaissance continues. After growing at an average rate of five per cent over the past decade, the IMF projects an acceleration to 5.5 per cent growth among Sub-Saharan economies in the next two years, as developed economies emerge from the crisis. We expect this growth to be sustainable for three broad reasons.

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment

    Close

    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm

    Email: customerservices@moneymarketing.com