View more on these topics

Product Matters

With income tax relief increased from 20 to 40

per cent, venture capital trusts are the talk of the town while enterprise investment schemes are largely forgotten. However, while EISs qualify for only 20 per cent income tax relief, they are demonstrably more tax-efficient than VCTs.

EISs offer capital gains deferral relief for gains crystallised in the last 36 months or in the next 12 months. They also offer loss relief. If a company that forms part of the underlying assets of a VCT goes belly up, that loss merely depresses the net asset value of the VCT, whereas a loss within an EIS can be offset against income or capital gains tax.

Finally, EISs are inheritance tax-efficient under the relevant business property rules.

Having looked at current offerings, there is one I like particularly. Lacomp British Enterprise EIS Fund 3 invests in a number of exciting pre-IPO companies, before the uplift usually associated with a listing on the Alternative Investment Market. Lacomp is relatively little known but was short-listed for one of the MultiManager Fund Manager of the Year awards.

Lacomp has assembled an impressive panel to help it source, evaluate and monitor unquoted firms. Its last EIS invested in a private company that has developed a patented solution, currently undergoing NHS field trials, capable of neutralising bacteria and viruses including MRSA. Lacomp has obtained an option to include this company in EIS Fund 3.

Initial commission of up to 4 per cent and trail of 0.5 per cent for three years are available. The fund closes on October 31, so you need to act fast.

Darius McDermott is managing director of Chelsea Financial Services


Ewing set to leave Fundsdirect

Fundsdirect chief executive officer Sean Ewing is understood to be leaving the company. Company founder Ewing is thought to have tended his resignation in August but will be leaving the group in the next few days.

IFP chooses new president

Institute of Financial Planning vice president Ian Shipway is replacing Campbell Edgar as president of the IFP while Jane Wheeler is to be the IFP&#39s new vice president. John Porteous and Barry Horner are joining the IFP&#39s board.

Steer clear of smaller companies funds, says Merrill chief

Merrill Lynch fund manager Richard Plackett has told IFAs to steer clear of 80 per cent of smaller companies funds after branding their performance unacceptable. UK smaller companies chief Plackett says only 12 of the 62 funds in his sector have an acceptable performance level. He believes that advisers should not put up with investment […]

79% of Wig firms say trail does not cover cost

Women&#39s IFA Group research shows that 79 per cent of member advisers feel trail commission does not cover the cost of serving existing clients. The data shows 93 per cent of Wig respondents have never received negative feedback from a client concerning ren-ewal or trail commission and 91 per cent believe their clients would not […]

Seeking quality in uncertain markets

By Ewan McAlpine, Senior Client Portfolio Manager In uncertain times, investors naturally seek safety. But in fixed income markets, what does that really mean? Ewan McAlpine outlines the approach RLAM’s Fixed Income Team will be adopting across its credit funds in response to potentially volatile markets this year. Click here for full article


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