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EIS provides chance to invest in rising F1 star

Formula 1 racing fans can invest in the career of an up-and-coming driver, Justin Wilson, through an enterprise investment scheme.

The Justin Wilson EIS was established to raise the $1.5m contribution needed by Wilson to secure his 2003 contract with the small Italian F1 team Minardi. Many drivers who move to Formula 1 bring sponsorship with them, but this is difficult to obtain.

Minardi needs the money because it operates on a tight budget compared with larger teams such as Ferrari and McLaren. It has competed in F1 since 1985 but its results have been modest. However, it has a track record in establishing the careers of drivers such as Jaguar&#39s Mark Webber, Renault&#39s Fernando Alonso and Jordan&#39s Giancarlo Fisichella.

Wilson won the inaugural Formula Palmer Audi Championship in 1998 and was the first British driver to win the FIA International Formula 3000 Championship in 2001. Formula 3000 is one step below F1. But if Wilson is successful at stepping up into Formula 1, investors could double their money. Once this has been achieved, 10 per cent of his income until 2012 could provide a further return for investors. This income &#45 estimated at between $1m and $10m will be derived from driving contract retainer fees, personal sponsorship, car sponsorship, product endorsements, merchandising spin-offs and personal appearances.

Motor racing fans who like the novelty factor of investing in a sport star&#39s career may find it appealing, especially if the tax breaks would be useful to them. This EIS is different to many EISs in that in invests in a person rather than a company, but this also makes it high risk. Motor racing carries with it the risk of injury or even death and this would obviously affect investors&#39 returns, as would Wilson&#39s failure to make it on the F1 stage.


Non-compliant advisers win rule relaxation

IFAs with non-compliant PI cover will no longer have to tell their clients after the FSA relented to pressure from Aifa and advisers.The change is effective from this week and means that IFAs unable to find cover or given permission by the FSA not to have compliant PI cover will no longer have to write […]

HSA offers cash plan as employee benefit

Healthcare cash plan provider HSA has introduced a cash plan for the employee benefit market, which waives premiums for one month for people who are changing jobs. The HSA corporate cash plan is available on a company paid or voluntary basis. It has four levels of cover with weekly premiums ranging from £1.70 to £6.80 […]

FSA to publish &#39simple guide&#39 to handbook

The FSA has pledged to design a simple guide to its regulatory handbook after a report by its practitioner panel criticised it for not being user-friendly.Following the report published in January, FSA head of investment firms David Kenmir admitted that he struggles at times to understand some aspects of the handbook.At a PI roadshow hosted […]

Margetts Fund Management – Gerry Anderson Productions

Monday, 31 April 2003 Aim: Growth by investing in a new television series of Captain Scarlet Minimum investment: Lump sum £25,000 Opening/closing date: March 7, 2003/May 29, 2003 Charges: Initial 5.5%, annual up to 1.5% Commission: Initial 3%, renewal 0.25% Tel: 0121 236 2380

Unfinished business?

Pension specialist Fiona Tait gives an update on three big announcements from the 2016 Budget – Pensions Advice Allowance (PAA), the Lifetime ISA (LISA) and the pension dashboard. £500 Pensions Advice Allowance What’s new Under current rules it is possible to deduct an adviser charge from a defined contribution pension fund to pay for financial […]


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