View more on these topics

Racing driver hopes EIS will be a winning formula

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

The Justin Wilson EIS has been established to raise the $1.5m contribution that Wilson needed 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 bigger 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 3,000 championship in 2001. Formula 3,000 is one step below F1.

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. This income – 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 are useful to them. This EIS is different to many in that it invests in a person rather than a company but this also makes it high risk. Motor racing carries the risk of serious injury, which would obviously affect investors&#39 returns, as would Wilson&#39s failure to make it on the F1 stage.

Recommended

Overview

Despite the publication (in August 2002) of a consultative document on corporation tax reform – including such issues as the taxation of unrealised capital gains and the removal of capital allowances (in the interest of aligning accounting and tax practice) no changes to corporation tax were announced so the rates we are working with for […]

Borrowers could save £3bn a year, says HSBC

HSBC is claiming that borrowers could save at least £3bn a year if rival big banks were to cut their base rates and match its 4.6 per cent homebuyer rate.The banking giant says competitors such as Woolwich, Abbey National, Halifax and Cheltenham & Gloucester charge around 2 per cent over the Bank of England&#39s base […]

Slow response from regulator

This firm acts as adviser to a trade association representing over 1,000 individuals in the financial and legal fields.We had a particularly relevant question arising from the FSA&#39s CP160, so we emailed the FSA, as recommended by it, on January 28 – no answer.After two reminder emails, we finally received a reply on the afternoon […]

nvesta – Super Tracker 30 Plan

Monday, 7 April 2003 Type: Capital protected bond Aim: Growth linked to the performance of the FTSE 100 index Minimum-maximum investment: £3,000-£2m Term: Six years Guarantee: Original capital returned in full providing index does not fall by more than 50% Return: 30% – 100% of growth in the FTSE 100 index at end of term […]

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