View more on these topics

Julian Gibbs

Most IFAs are frightened of Enterprise Investment Schemes and, in many cases, quite rightly. But there are some excellent asset-backed schemes in growth areas which all IFAs should consider as part of a portfolio for their bigger clients.

They do have two major taxation advantages over venture capital trusts. Like VCTs, they have 20 per cent income tax relief, capital gains tax deferral and tax-free capital gains. But, unlike VCTs, if you lose money on your investment, you can get tax relief. They are also exempt from inheritance tax. On the other hand, dividends are not tax-free.

The answer is to invest in an EIS which goes for all-out growth. The one I like best is Childcare Corporation 4, sponsored by Teather & Greenwood.

The childcare sector is currently worth more than £3bn a year and is experiencing strong growth as a result of socio-economic trends, cutbacks in local authority childcare provision and the Government&#39s childcare tax credits introduced in the 1998 Budget.

The number of day nursery places has been projected to grow by 50 per cent between 1999 and 2003 from 210,000 to 315,000 places.

What I particularly like about Childcare Corporation 4 is that it is run by highly experienced managers of nurseries and is used by many major institutions. The operations director, John Woodward, was the founder of the BusyBees Group, which is recognised by local authorities as the leader in its field. This also means it can attract the best staff, which is not as easy for those people who are starting up in the business.

I believe that an investment in Childcare Corporation 4, even without the excellent tax reliefs, is a good investment in its own right. It has raised £5m already and expects to raise another £5m before the offer closes on June 30.


Networks offer deals to lure Pru sales staff

At least two IFA networks are offering ex-Prudential sales staff special deals in a bid to woo them away from national IFA Inter-Alliance. Letters obtained by Money Marketing reveal that Bankhall and Positive Solutions have negotiated reduced network rates for Pru employees who were made redundant last month following the company&#39s decision to close its […]

Morley appoints new SRI team member

Morley Fund Management is appointing Julian Murray to its socially responsible investment team to take responibility for the management of the Norwich Union Sustainable Future Global Growth Fund.Murray joins from Deutsche Asset Management where he worked on the global strategy team after a spell as a fund manager in the Japan team at Deutsche.Morley Fund […]

Lore of averages

Could you give me some advice over the level of pension saving I should be making and what life cover I should take out? “Mr Average” client sometimes asks what is the average pension contribution and level of life cover they should put in place. The usual answer we give is that there is no […]

CIS marks down FSA for Saltr sign ban

CIS is slamming the FSA for not allowing the ABI Raising Standards quality mark on its comparative league tables. It is calling on the FSA to rethink its decision and allow companies with the quality mark to display the accreditation sign on the tables. The FSA says because the Raising Standards scheme is voluntary, accreditation […]


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    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