EIS Magazine Issue 2

Supported by
www.eismagazine.com
MARCH / APRIL 2015
ISSUE 02
The IFA Gu i d e t o Ta x Eff i ci e n t I n ve s t i n g
OSBORNES
CHANCE
WHAT THE BUDGET MEANS FOR ALTERNATIVES
SEIS
THE NEXT
BIG THING
EIS
BPR
AND IHT EFFICIENCY
SEIS
VCT
SITR
IHT
ALTERNATIVE
ENERGY AFTER APRIL
BPR
4.
Welcome
It seems theres some kind of an election coming. Michael

Wilson muses on the prospects for consumers, & for
advisers too.
5.
News in Brief
6.
Adviser Checklist for April
EIS Magazine is published by
IFA Magazine Publications Limited,

The Old Wheelwrights, Ham, Berkley,
Gloucestershire GL13 9QH
Full subscription details and eligibility criteria are
available at www.eismagazine.com
2015. All rights reserved.
Our monthly round-up of news stories. Keep sending us your

news, please.
Ingenious Media presents a last-minute guide to end-of-year

tax efficiency.
Telephone: +44 (0)117 9089 686

Editor: Michael Wilson
editor@ifamagazine.com
Publishing director: Alex Sullivan

alex.sullivan@ifamagazine.com
Design: Fanatic Design

www.fanaticdesign.co.uk
7. The SEIS Revolution

Michelle McGagh writes about the biggest trend of the
moment. Dragons Den watchers, begin here.
10. Technology Perspectives
A look at two current projects from the McKinnons stable
EIS Magazine is for professional advisors only.

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available at www.eismagazine.com
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has been carefully checked for accuracy, but no
responsibility can be accepted for inaccuracies,
independent research and where necesary legal advice
should be sought before acting on any information
contained in this publication.
Upcoming Events
12. Venture Capital Trusts

Annabel Brodie-Smith from the Association of Investment
Companies explains why VCTs are all the rage at the
moment. And why they can offer a flexibility that even EIS
cant always match.
16. IHT Strategies
Dermot Campbell, MD at Kuber Ventures, explains how EIS

investments can work within clients inheritance tax
planning strategies
Tax Efficient Investing for HNW Clients

An Adviser Seminar on EIS/VCT and BPR
Investments from IFA Magazine and EIS Magazine
Tuesday 28th April 2015
Bruntwood Tower, Manchester
Thursday 30th April 2015
The Capital Club, London
Registration is free
Full details at http://tinyurl.com/k3gtmsx
These extended morning seminars will explore
the possibilities for HNW investors of all types,
and will explore EIS/SEIS, VCT, BPR and SITR
investments with an impressive panel of expert
speakers. CPD accredited. Lunch included.
20. Business Property Relief

Tony Mud, Tax & Trusts specialist at St. Jamess Place, explores
an option thats often overlooked.
24. The Future of Alternative Energy Investment

Michael Wilson talks to Claire Ainsworth, head of Triple Point,
about the forthcoming changes to EIS fund eligibility.
26. Open Offers
Our monthly listing of whats currently available for subscription.
www.eismagazine.com March/April 2015
Welcome
Michael Wilson, Editor
As the air finally cleared in the House of Commons
after the Chancellors Spring Budget speech on 18th
March, you could almost sense the relief among the
assembled deputies.
George Osborne had got to the end of his hour-long
speech with a pretty neutral balance on the savings and
investment side. An extension of the ISA contributions
entitlement here, a cash incentive to first time home buyers
there, and the usual strong of threats against tax-dodgers,
both personal and corporate. As pre-election budgets go, it
could have been worse.
But there was more going on beneath the surface than
seemed to meet the eye. For one thing, Mr Osborne had
probably done the alternative investment market a power
of good ironically, by making life harder for high net
worth pension savers. By lowering the lifetime pension
contribution cap from 1.25 million to just 1 million, with
effect from 2016, the Chancellor was effectively increasing the
pressure on HNW clients to seek out more and better ways of
sheltering their cash from HMRC.
The demand is already hefty. Just think about the number
of venture capital trusts that have been able to close their
offers ahead of schedule this year, because of the heavy
demand from wealthier investors. Consider the fact that
EIS investment is now running at record levels. Think about
the huge expansion of activity in crowdfunding, some of it
extending to clients who wouldnt normally have considered
themselves high rollers in the past but who are starting to
think about seed funding. (And who, in some cases, would
possibly be better advised to stay away. But thats
another story.)
Changes to the EIS/VCT Regime
There was more change buried in the many reams
of printed detail. On the one hand, the Chancellor
took the opportunity to spell out the future for
what are being called Social Venture Capital
Trusts, a new type of vehicle which is still very much on the

drawing board. On the other, he took action to align the whole
alternative investment market with the European rules on
state support to investment vehicles (see the following pages)
with particular reference to EIS & VCTs.
And in the process he raised some serious questions which
will occupy the experts for some time to come. Suffice it to say
that, though, that on the whole the new VCT and EIS rules are
benevolent in their intention. Further proof of the Chancellors
good intent can be seen in the way that he abolished the
stupid rule that prevented SEIS companies from applying for
EIS or VCT funding until they had spent at least 70% of the
funds they had raised under SEIS.
Renewable Energy
Mr Osborne also took the chance to cast some welcome
light on the powers of Socially Investment Tax Relief (SITR)
vehicles, now that EIS schemes are being disbarred after
April from investing in renewable energy projects. (The
point here being that such schemes are already getting quite
a lot of other financial incentives, so fairs fair.) But SITRs
can still invest in community energy projects, some of which
might look really quite similar to renewables
All in all, then, wed be well off target if we thought the
alternative investment sector had been untouched by the
Budget. The changes are small, significant and generally
timely. It seems unlikely that any of them will deflect the
rampant demand from investors for these new investment
products. EIS
News In Brief
A Round up of the Latest Industry News
Budget Changes to VCT
and EIS Investments
The regulatory changes announced
by the Chancellor to EIS, VCT and SEIS
schemes on 18th March have been
largely designed to ensure that they
comply henceforth with the current
European rules on state assistance for
high growth companies. So far, so good.
Most investors will never notice the
impact of the new rules, because on the
whole they tend to apply only to fairly
extreme situations. That said, some of
them may turn out to present certain
difficulties which are likely to take some
time to resolve.
In effect, the Chancellor let it be
known that EIS or VCT investment will
henceforth be limited to companies
that were less than 12 years old

when they received their first EIS or
VCT investment - except where the
investment would lead to a substantial
change in the companys activity.
What, exactly, did a substantial
change in the companys activity mean?
How substantial was substantial?
And, not least would the new rules be
applied retrospectively to investments
that had already been made?
Its an important point, because
many VCTs and EIS schemes invest in
companies much older than 12 years.
Would they be disqualified? And if they
were simply reversed into new vehicles,
would that make them new for the
purposes of the rules? It still remains to
be clarified.
Renewable Energy
Meanwhile the government has

clarified the situation around the new
social investment tax relief (SITR)
schemes and also the newly-mooted
Social VCT schemes when they arrive.
It is, of course, widely appreciated
that EIS, SEIS and VCTs will be
unable to invest in any renewable
energy projects after 6th April. But
the Chancellor has confirmed the
expectation that SITR schemes will be
able to invest in community energy
generation projects.
It will probably be clear that there
is in fact some overlap and interplay
Marketing SITR funds
Meanwhile the rules on the

marketing of SITR funds are being
relaxed. With effect on 13 April 2015,
the present ban on directly advertising
SITR funds to the public is to be
abolished, with the proviso that the
pattern should follow the promotion
pattern of EIS funds.
The Association of
Investment Companies
(AIC) responded positively
to the Chancellors announcement.
Ian Sayers, Chief Executive, said on
18th February that he welcomed the
Governments commitment to secure
the future of VCTs by ensuring that they
gain European state aid clearance.
And that the AIC would consider these
proposed rules with our members and
their managers and work constructively
with the Government to secure the best
possible outcome for the sector.
Social Venture Capital Trusts

between sectors here: many if not
most community energy schemes
will be built around renewable
energy. Whereas the majority of EIS
renewable energy projects at present
tend to revolve around larger and
more technology-oriented projects.
The government says it intends
to allow a transitional period of 6
months following state aid clearance
for the expansion of SITR before
eligibility for EIS, SEIS and VCT is
withdrawn. During that period,
community schemes will be able to
access EIS and VCT as before.
SEIS Changes
Other changes are less difficult to

interpret. SEIS companies are being
freed from the rule that says they must
have spent at least 70% of the funds
raised under SEIS before they can be
considered for EIS or VCT funding. This
measure ought to make it easier for
companies to grow and
progress smoothly.
The Chancellor also laid out the

governments plans for so-called Social
Venture Capital Trusts (Social VCTs),
intended to increase participation
in social investment among retail
investors who want to invest smaller
amounts than are generally needed for
direct investment.
Broadly, the new Social VCTs will
be based closely on the existing VCT
patterns, so as to maintain consistency
across the tax system and to benefit
from the existing familiarity among
advisers. Social VCTs will have the
same excluded activities as SITR.
The government is to set the rate of
income tax relief for investment in a
Social VCT at 30%, subject to State aid
clearance. Investors will pay no tax
on dividends received from a Social
VCT or capital gains tax on disposals
of shares in Social VCTs. Officials will
talk further to the sector about how
the Social VCT will be delivered before
proceeding to legislation in a future
Finance Bill.
A Year End Checklist

for Advisers
Edward Grant, an Investment Director in the Client Relationship Team at
Ingenious Media, offers some timely thoughts
There are many tax year end checklists at this time of
year, but few of them consider the full spectrum of
solutions available.
With major pension changes coming into effect from 6
April 2015 and the possibility of investors having their
personal allowance in the 2014/15 tax year reduced to nil,
based on an adjusted net income of 120,000, income tax
and retirement planning should both remain key focuses.
As the tax year end fast approaches, it is not too late for
investors to make the most of allowances, exemptions and
reliefs available, so now is the time to consider the following
strategies:
Using pension contributions to reduce adjusted net
income and reduce the higher or additional rate tax liability
or, where adjusted net income is between 50,000 and
60,000, the impact of the Higher Income Child Benefit Tax
Charge Utilising the New ISA 15,000 contribution limit for
2014/15, which maintains a tax free return for future years
Where an estate is liable to inheritance tax (IHT), the

3,000 annual exemption is available for gifts of up to
3,000 for the current tax year. Any remaining annual
exemption can be carried over from each tax year to the
next, but the maximum exemption is 6,000. This is a use
it or lose it exemption and therefore, combined, a married
couple could have a maximum of 12,000 annual exemption
if they have not yet used the previous years allowance
Taking advantage of the capital gains tax (CGT) annual
exemption of 11,000
EIS Magazine March/April 2015
Clients who have capital gains in excess of their annual

exemption arising in the 2014/15 tax year can defer the
CGT liability by investing their gain into an Enterprise
Investment Scheme (EIS) qualifying investment within 3
years of or 1 year prior to the gain arising
o In addition, if an investor has a UK income tax liability,
then they could claim income tax relief of 30% against their
2014/15 tax liability, up to 1 million, by investing into EIS
qualifying companies
EIS income tax relief can be claimed in the tax year in
which the investment is made, or carried back to the
preceding tax year. As such, if an EIS investment is made in
2014/15 tax year, the 30% income tax credit can be offset
against your 2014/15 tax liability and/or your 2013/14
tax liability
For individuals that already know an income tax liability

will arise in the 2015/16 tax year, an investment can be
made into Ingenious Path Plus Film EIS, as shares in these
EIS qualifying companies will be allotted after the end of the
2014/15 tax year end
Since being launched in 1994, the EIS has grown
considerably as a retail solution. With a relatively accessible
entry point of a 10,000 minimum investment, the EIS now
raises in excess of 1 billion a year.
Seed Investing
Michelle McGagh discusses the advantages, the tax breaks and the
potential pitfalls of a fast-growing investment sector
Investors receive an
attractive initial income
tax relief of 50%
have a
permanent
establishment in
the British Isles
MUST BE
BASED IN THE
UK
LESS THAN
200,000
ASSETS
SEIS
TO QUALIFY FOR SEIS,
COMPANIES MUST
The seed enterprise investment

scheme (SEIS) has remained a
relatively niche investment since its
launch three years ago, but it offers
generous tax breaks for clients with
the right risk tolerance.
Originally announced in the
Chancellors 2011 Autumn Statement,
they were finally launched in 2012 as a
way to help small and early stage startup businesses and ultimately to boost
the UK economy during the long exit
from the financial crisis.
Three years down the line, the SEIS
sector is making strong headway
and, as well see, the 2015 Budget
statement brought an important
change in the way that SEIS companies
can graduate to EIS or VCT status.
The Tax Breaks
Based on the long-established
enterprise investment scheme
(EIS), SEIS offers even greater tax
benefits for investors willing to take
a risk on start-up companies. Its no
exaggeration to say that, in creating
FEWER THAN
25
EMPLOYEES
BE NO MORE
THAN TWO
YEARS OLD
SEIS, the UK government has created

the most generous investment scheme
in the world offering both income
and capital gains reliefs, as well as
downside protection for shielding
investors in the event of failure.
The original introduction of SEIS
formed part of a wider shake-up of tax
incentivised investment plans such as
EIS and venture capital trusts (VCT).
HM Revenue & Customs (HMRC) said
at the time that SEIS was intended to
recognise the particular difficulties
which very early stage companies face
in attracting investment by offering tax
relief at a higher rate than that offered
by EIS.
Income Tax
Investors receive an attractive
initial income tax relief of 50% on
investments, regardless of the income

tax rate they pay, up to the 100,000
maximum that can be invested each
tax year but the shares in the
company have to be held for at least
three years to qualify for the relief.
This 100,000 can be spread over
a number of companies but cannot
be invested in just one company. A
company can raise no more than
150,000 a year from SEIS, and
investors cannot control the company
receiving their money and cannot
hold more than a 30% stake in any
company in which they invest. An
investor can, however, be a director of
the company they want to invest in but
not an employee.
There are a number of factors that
companies have to satisfy in order to
qualify for SEIS. Companies must be
www.eis.magazine.com March/April 2015
Seed Investing
In the first year around

1,100 companies
benefited from over
80 million invested
through SEIS
based in the UK and have a
permanent establishment in the
British Isles. They must also have
fewer than 25 employees, be no more
than two years old, and have assets of
less than 200,000.
The company also has to be part
of an approved sector, where the
government wants to kick-start
entrepreneurship - which does not
include the financial and investment
sector or property sector.
Capital Gains Tax
It is not just relief on income that
SEIS offers, but exemptions on capital
gains tax (CGT) too.
If shares are held for three years
or more, there is no CGT to pay, and
no inheritance tax (IHT) liability.
There is also an additional relief that
can be claimed called capital gains
reinvestment relief.
If an investor has paid CGT on other

investments, up to 50% of the tax paid
can be claimed back if the money is
reinvested in a qualifying SEIS in the
same tax year. Reinvestment relief was
originally intended to be a temporary
measure, available in the tax year
2012/13, but it was made a permanent
feature of SEIS by chancellor George
Osborne in his 2014 Budget.
Loss Relief
If the company invested in goes
bankrupt - which start-ups are more
likely to do any losses can be offset
against either income or capital.
Investors can claim loss relief on the
amount they invested equal to half of
their total investment multiplied by
either their income tax or CGT rate.
How Loss Relief Works

The benefits of can be illustrated
by an investor paying 45%
additional rate income tax and 28%
CGT, investing 10,000.
In the first scenario, the company
is successful and the investment
doubles in value to 20,000. The
investor receives 50%, or 5,000
in income tax relief. As the investor
has held the shares for three years
or more there is also no CGT to pay
on the 10,000 growth, meaning
the tax-free return on the 10,000
investment is 15,000.
In the second scenario, if the
shares in the company are still
10,000 at the end of three years,
the investor has still realised a
5,000 reduction in their income
tax bill.
In the third case, the company
fails and the shares become
worthless. The investor has already
received 5,000 of their 10,000
investment back in income tax
relief. They then receive loss relief
equal to 45% of their at risk capital,
totalling 2,250, meaning their
actual loss is just 2,750.
Carry Back
There is the option to carry back
SEIS tax relief to the previous year
by electing all of some of the shares
purchased in the current tax year to
be treated as though acquired in the
8
previous year up to a maximum

of 100,000.
Initial Take-up
Figures illustrating the take-up of
SEIS are limited, due to the infancy
of the investment scheme. The
only figures available from HMRC,
published in December 2014, provide a
snapshot of the number of companies
that have benefitted from SEIS and
the types of investors placing money
through the scheme.
In the first year around 1,100
companies benefited from over 80
million invested through SEIS. The hitech sector received the most money,
according to HMRC, taking a 32%
share of the 80 million. The business
service sector took second place with
22% invested and the distribution,
restaurants and catering sector came
in third with 14% of the total sum
invested in this area.
A total of 5,000 investors claimed
income tax relief on self assessment
forums under SEIS in 2012/13 and the
majority, 63%, claiming relief invested
less than 20,000 into companies.
Risk
While SEIS may be the preserve of
higher-net-worth investors, it would
seem they are tentative about investing
too much through the scheme as
investments of 20,000 or less made
up 70% of the total raised through
the schemes.
Those investing 50,000 or less
contributed 86% of the 80 million
raised by SEIS in 2012/13.
Sarah Wadham, Director General
of the Enterprise Investment Scheme
Association (EISA), which is the trade
body for both EIS and SEIS promoters,
said at the outset that the risky nature
of SEIS investment meant that the
schemes would remain small and
niche. However, recent changes to
the rules has made it more attractive
for investors to invest in early-stage
companies through SEIS.
Previously, companies that were
using SEIS were not allowed to apply
for EIS status, through which a larger
sum of money can be raised, until they
had finished using at least 70% of the
cash raised through SEIS.
Seed Investing
Crowdfunding
platforms use SEIS to
pool investors money
while offering tax
breaks for investing in
fledgling businesses
Now, companies will be allowed

to apply for EIS status and therefore
raise more money, more quickly,
before finishing their SEIS cash, says
Wadham. (See also our News report
on Page 5 for more details of how
the 70% requirement has now been
abolished.)
Before, you had to finish your SEIS
money before you could raise EIS
money, but now people are doing
funding for both together, so the first
[investors] get SEIS tax breaks and then
continue to get EIS [tax breaks] the
more [money is invested], she says.
You can grow your investment as
the company grows. There are better
tax breaks early on when it is more
risky and [the tax breaks are] less
good when it gets bigger, even though
through EIS they are still generous.
Wadham says that the changes to
the rules have been welcomed, as
the small sums raised by SEIS a
maximum of 150,000 were typically
to create demo products which then
allow companies to progress to EIS
and raise more money.
Companies use a hybrid [of SEIS and

EIS], she says. They do SEIS first and
then more on to EIS because SEIS is just
too small.
SEIS is not just small, it is also very
risky, and Wadham says it is only
suited to sophisticated, high-net-worth
investors. In her experience, Wadham
says, she has found that advisers are
generally better off putting clients into
EIS than SEIS. But SEIS is something
they should definitely know about,
she says.
Crowdfunding Issues
The increased popularity of
crowdfunding is one avenue through
which clients may learn about SEIS.
Crowdfunding platforms use SEIS to
pool investors money while offering
tax breaks for investing in
fledgling businesses.
There are currently 35 crowdfunding
platforms in the UK, and the equity
element of the crowdfunding market is
worth over 50 million thats distinct
from the peer-to-peer lending part of
the crowdfunding market, of course.

However, Wadham believes that
crowdfunding is too specialist an area
for advisers to get too involved in, and
that it should be left to angel investors.
This concern has also been flagged by
the Financial Conduct Authority, which
has tightened its rules around who is
allowed to invest via crowdfunding.
Rather sternly, the regulator reminds
us that most investments in start-up
businesses result in a 100% loss of
investment, and that between 50%
and 70% of new businesses fail in the
early years.
Advisers are wary enough about
recommending EIS so they will be even
more wary about recommending [SEIS
through] crowdfunding, she says. SEIS
will remain small and nichebecause it
is so risky and advisers need to protect
their backs when it comes to
[client] suitability. EIS
The Multi-Manager EIS Platform

Kuber Ventures offers investors access to some of the most
innovative EIS investment opportunities, managed by leading Fund
Managers and all within a single platform.
Through a single applicatoin from, investors have access to a range
of 19 individual funds across 8 different strategies. The platform
provides consolidated online valuations, and a document repository
which stores all relevant documents including EIS3 certificates
Investors can choose from a range of EIS funds, creating a single
portfolio which is diversified across a number of Fund Managers and
underlying portfolio companies, offering targeted spread of between
15-40 companies in a typical portfolio.
For more information about Kuber Ventures and its range of EIS Portfolio Funds
www.kuberventures.com
Kuber Ventures Ltd [FRN 574987] is an Appointed Representative of Sturgeon Ventures LLP which are Authorised and Regulated by the Financial Services Authority.
+44 (0)20 7952 6685

info@ kuberventures.com
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A hard copy of the Amati VCTs Top Up Offers Document
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Analyst, Hardman &Co
Risk Warning
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risk than many other forms of investment. For more information relating to risks, please see the Risk Factors section in the Amati VCTs Top Up Offers Document 2014/2015 and 2015/2016 relating
to the companies and offers for subscriptions. In particular, potential investors should be aware that their capital is at risk and that they might get back less than their original investment; the value
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THIS ADVERT IS A FINANCIAL PROMOTION WHICH HAS BEEN APPROVED BY AMATI GLOBAL INVESTORS LTD. INVESTORS SHOULD NOT SUBSCRIBE FOR SHARES IN AMATI VCT
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Amati Global Investors Ltd is authorised and regulated by the FCA with registered number 198024.
Last Call for Alternative

Energy EIS
As the opportunities for EIS investing in alternative energy fade into the
sunset, Mackinnon are shortly to close their X-Wind offering
Mackinnons 2 million offering for its X-Wind project,
which has been open since January, will sadly be closing the
funds doors on 31st March ahead of the new regulations on
EIS eligibility for renewable energy.
Established in 1997 by Iain Mackinnon, the company
specialises in Corporate Finance Advisory, Wealth
Management and merchant banking with particular
expertise in the renewable energy and health sectors.
X-Wind
X-Wind, says Mackinnon, has developed a groundbreaking Vertical Axis Wind Turbine aimed at the medium
scale renewable energy sector. The team has drawn on
its extensive experience gained developing the worlds
largest wind turbines at Vestas. Since its launch in 2012
X-Winds core patented technology has won five high-profile
technology awards.
X-Winds visible sales pipeline, according to Mackinnons,
exceeds 40 million, and the company is also securing
commercial commitments for its 80kW turbines from
customers in need to secure energy pricing and supply.
X-Wind has secured a partnership with the UKs largest
electricity user. To date X-Wind has raised 1.7 million
in grants and 0.3M of equity. X-Wind currently requires
2.0M of equity funding to complete the production of their
first full-scale 80kW turbine.
Barts Health Open Offering

Mackinnons is also operating with portfolio company Peto
Limited, a marketplace for the Public Sector, in respect of
an offering in respect of Barts Health. Peto was appointed
in September 2014 to support the Trust in the delivery of
savings from the off-contract spend of around 38 million
per year. Three months into service delivery, the company
was able to report that the Peto team were achieving 12%
realised savings against a target of 4% on prior spend.
This is a strong result, says Mackinnons, and reinforced
by huge opportunity to increase the scope of the throughput
which has been lower than forecast to date.
We are thrilled with the results we are achieving at Barts,
says Peto Chief Executive Julian Trent, and we look forward
to collaborating with the team to achieve even greater
savings in the future.
Active in over 200 NHS trusts, Peto connects public sector
buyers and private sector sellers via an easy-to-use online
marketplace, and where necessary, with additional resources
to reduce spend via its insourcing procurement service. EIS
11
Venture Capital Trusts

Annabel Brodie-Smith, Communications Director, Association of Investment Companies
Venture Capital Trusts (VCTs) have been celebrating

an important birthday: its now twenty years since VCTs
were launched.
The sector has matured with strong performance and
assets close to their record level, at 3.2bn of assets. VCTs
have had a strong year, with the average VCT up 6% and the
average Generalist VCT up 8%. The good news is that VCT
managers in our latest survey reported a positive year, with
managers overwhelmingly finding a good flow of investment
opportunities and some companies even enhancing their
investment teams accordingly. So what are VCTs and how
would you go about selecting a VCT for your clients?
VCTs in many ways are like other investment companies.
They are companies listed on the stock exchange, investing
in a diversified portfolio of investments managed by a
professional investor. However, they must invest 70% of
their portfolio in up and coming businesses or in AIM shares.
These investments must be in companies which are below
15m in size at the time of the investment. To compensate
12
your clients for the extra risks of investing in smaller

companies there are tax benefits. Your clients will pay no
income tax on any dividends you receive, and no capital
gains tax on any profits you make when you sell your shares.
These reliefs are available at all times, irrespective of how
much you invest, how you buy the shares or how long you
hold them. However, if you buy shares on the launch of a VCT
or when it raises new money, then you receive 30% tax relief
to reduce your income tax bill, providing you hold the shares
for a minimum of five years and subject to certain conditions.
This is known as initial or upfront income tax relief.
When looking at VCTs there are three main sectors as
defined by the AIC - the Generalist sector, the AIM Quoted
sector and the Sector Specialists. As the name of the
Generalist sector suggests, these VCTs invests in a range of
investments in different sectors. The VCT AIM Quoted sector
includes companies whose policy is to invest in a range of
qualifying companies listed or about to be listed on AIM
or on any other exchange where the securities are treated
as unquoted. This sector offers advisers a route into these

listed companies which are not eligible through EIS. Then
there are the Sector Specialists which include Healthcare
& Biotechnology, Environmental, Infrastructure, Media,
Leisure & Events and Technology. There is a host of data for
researching VCTs in these sectors on the AIC website www.
theaic.co.uk, including performance and NAV data, yield and
ongoing charges.
Of course, VCTs do not just have investment benefits for
their investors. VCT investment can have a tangible impact
on the businesses they invest in. Some very well-known
and successful consumer brand companies are supported
by VCTs, such as Secret Escapes and Zoopla, backed by
Titan VCT at Octopus Investments. However, its striking
how diverse the companies VCTs invest in are. They range
from a fertility clinic, CREATE Fertility, where a 5m
investment from Livingbridge has facilitated the opening of
a flagship clinic in central London, to the good old fashioned
British pub. Brewhouse & Kitchen, backed by Puma VCTs,
3.2
BILLION
ASSETS
have successfully expanded their number of pubs and

microbreweries.
Some VCTs are helping save

lives through their investment in
healthcare technology
Some VCTs are helping save lives through their
investment in healthcare technology. For example, Albion
Ventures invests in Dysis, a company that developed a
gold standard technology to detect cervical cancer. This
technology has been used to scan 30,000 patients and has
improved cervical cancer detection rates. Elsewhere, in
the media sector, Edge VCTs are backing Mirriad, a video
advertising solution for the skip generation, those
6%
8%
AVERAGE VCT
GROWTH 2014
GENERALIST VCT
GROWTH 2014
13
Venture Capital Trusts
of us who watch TV shows or videos online and skip the

advertisements. Mirriad places the advertised products
into the TV shows content subtly and seamlessly, so for
the viewers, there are no interruptions to the programme
but the advertised products reach the target audience and
create a new revenue stream.
The uncertainty that the

approaching election brings is an
issue for the industry, but VCTs do
not seem unduly concerned
With the economy currently thriving, its not surprising

that there is currently a lot of confidence within the
industry. Confidence in deals is flagged by Mark Wignall,
Managing Partner at Mobeus Equity Partners, who said:
The Mobeus VCTs have been investing in excess of 30
million for each of the past two years. Current deals in
progress suggest that the 2015 figure will be higher.
Bill Nixon, Managing Partner of Maven Capital Partners,
manager of the Maven VCTs, is also positive:
Weve just successfully closed another top-up fundraising,
having raised around 40m in the past 15 months from
investors keen to access the strong tax-free returns from VCTs,
and have invested in 17 profitable UK companies across a
range of sectors in the past 2 years.
The uncertainty that the approaching election brings

is an issue for the industry, but VCTs do not seem unduly
concerned. Dr Paul Jourdan, CEO of Amati Global
Investors, comments:
Mays general election injects uncertainty into the
investment outlook for 2015. However, the kinds of small
companies we look to hold in the Amati VCTs are mostly
focussed on specific growth niches, which can prove resilient
in the absence of a major setback.
David Hall, Managing Director, YFM Private Equity, is of
the view that SME confidence has not been affected by the
forthcoming election. He states:
Strong demand for investment finance has continued in
2015 from the previous year. SME confidence has remained
high reflecting overall UK performance; we have seen no
tailing off pre-election.
So, twenty years on since VCTs were launched, the
oldest existing VCTs in the sector are Baronsmead VCT
and Northern Venture Trust and they are still thriving
today. Interestingly, some 1,000 at launch invested
in these companies would have grown to 3,549 and
4,031 respectively in share price total return terms.
Their investors certainly have something to celebrate. If
youre interested in finding out more about VCTs, we have
produced a new guide to help your clients understand more
about VCTs. Theres also a series of videos that bring the
impact of VCT investment to life, and the AICs extensive
data on VCT members available at www.theaic.co.uk. EIS
CHECK OUT THE
OPEN OFFERS
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26
14
EIS Magazine March 2015
Venture Forth
Dermot Campbell, MD at Kuber Ventures, explains how EIS investments
can work within clients inheritance tax planning strategies
One of the most
generous tax
incentives out there
is unquestionably the
Enterprise Investment
Scheme or EIS
What does investing in Enterprise Investment Schemes

(EIS) really involve and can IFAs truly be independent
if, as a government endorsed tax-planning solution
EIS is not considered due to a lack of knowledge and
misconception?
Dermot Campbell, MD of independent Multi-Manager EIS
Platform Kuber Ventures, talks about the key to using EIS in
estate planning and dispels some of the myths associated with
this route of tax-efficient investing.
The Government has thrown everything it can think of to
encourage money to be invested in small to medium sized
businesses. One of the most generous tax incentives out there
is unquestionably the Enterprise Investment Schemes or EIS.
For clients who want to maximise the amount they pass on
to their successors, but still want to retain control, it doesnt
get much better, however, be warned, you need to get the
financial planning right.
What is the Key Benefit to EIS in an Estate

Planning Context?
There are 2 relevant reliefs that apply to Estate Planning:
Business Relief, which was formally called Business Property
Relief & Replacement Property Relief.
You get 100% Business Relief (BR) against an estate for
qualifying property which includes a business or interest in
a business or shares in an unlisted company. There are a few
exceptions such as companies which deal in shares or land but
all EIS investments should qualify for BR.
Business Relief is only relevant if you die and to qualify
you must have owned qualifying property for at least 2 years
before your death. Where you have a portfolio of investments
which qualify for BR and part of the portfolio is in cash, the
cash element will not qualify for BR
If you sell a BR qualifying asset and the proceeds are
reinvested in an alternative qualifying asset, within 3 years of
16
disposing of the original asset, then this new property may be

treated as Replacement Property. Your estate will be able to
treat the ownership period of the first property towards the 2
year qualifying period for Business Relief.
Care needs to be taken here, because the HMRC guidelines
state that you need to re-invest the entire proceeds in
Replacement Property, suggesting that if you sell an asset
for say 10,000, spend 2,000 on a Holiday and invest the
remaining 8,000, then the new property may not qualify
as Replacement Property. It is worth contacting HMRC for
guidance if you are considering investing clients funds in
Replacement Property.
Types of Client for Whom EIS is Suitable

The starting point here is that the client should generally be
High Net Worth within the FCA definition. The FCA defines
HNW as someone with at least 250,000 of assets excluding
principle residence, pensions and a few other things, or an
income over 100k.
There are circumstance when recommendations have
been made to clients below the HNW threshold which are
appropriate, however, if you work on the principle that for
a less wealthy client, it is sensible to keep EIS to below 10%
of their investments, then a client with slightly below the
threshold would only be able to invest 25,000.
Clients also need to be a tax payer; i.e. they should pay
income tax or have incurred a capital gain within the last 3
years. EIS investments benefit from tax free gains providing
the investor claims at least 1 of income tax relief on each EIS
investment and it is probably fair to say that if they are not
paying income tax, then you shouldnt recommend an EIS,
although as always, there are exceptions to this.
The perfect EIS investor from a tax perspective pays income
tax at higher rates and is likely to continue to do so into the
future; they have incurred a capital gain in the recent past; and
they have an estate which is likely to be subject to Inheritance

Tax. For these clients, if they die having owned shares in an
EIS for at least 2 years, then the tax relief alone will be worth
nearly 75p in the 1 assuming the assets returns its value and
the tax relief is held in cash at death. These investors will be
able to gain maximum advantage from loss relief should the
investment return less than 70p in the 1.
The key here is building a well diversified portfolio and
looking for 3 in 30 investment to outperform. Loss relief will
cap losses of the disappointing investments at 38.5p while the
gains on the successful investments will be tax free.
Very close behind perfect EIS investors are clients who are
higher rate tax payers with no CGT liability: EIS is extremely
attractive for these investors too.
These investors are often well suited to private equity style
EIS because the loss relief will protect the downside for them.
The table illustrates the power of loss relief for a 40%
tax payer.
Investors who are likely to be basic rate tax payers in the
future still enjoy very generous tax reliefs using EIS. Loss
relief will be of less value for these clients so focusing more
on the asset or income focused investments. With these
investments, the likelihood of needing to use loss
relief is lower.
There are a number of EIS funds available which invest in
companies which own physical assets (e.g. pubs), or have
contractual rights to secure income streams. Whereas these
investment are unlikely to deliver the same returns as private
equity style EIS funds, the risk of a return below 70p per
1 invested is less likely. (30% tax relief + 70% investment
recoupment = 100% recoupment). It is still important
to diversify across strategies to reduce risk so a portfolio
approach is essential.
Suitability Considerations
I recently conducted some analysis into Financial
Ombudsman decisions relating to EIS. The Financial
Ombudsman Service website publishes decisions going back
to 1 January 2012.
There are a whopping 6,260 complaints over the period
01.01.2012 06.03.1 made on the general filter option of
Investments and Pensions. 2,104 of these complaints were
upheld by the Ombudsman. Encouragingly, only 18 of these
cases related to EIS of which 12 were upheld. Of those that
were upheld, several can be viewed as not particularly specific
to EIS as they related to poor service, however, there were
some important lessons to be learnt. There are some helpful
comments within the reports:
10 investments - 100 each
Total investment 1,00
Responsibility for the investment choices within the EIS

lay with the EIS provider rather than [the adviser]. Since [the
Adviser] was not responsible for those investment choices, I
did not consider whether they were properly made because
I would not uphold the complaint against [the Adviser] even if
they were not.
Mrs V could afford to invest the sum she invested into the
EIS. That money was a relatively small proportion of her overall
wealth, and she could afford to accept higher risks with it if
she wanted to. She was aware from the outset that the EIS was
higher risk than her other investments.
An investors age is relevant to the amount of risk they
are able and willing to take, but it is rarely the only factor.
Some elderly investors are happy to take extremely high risks.
Some young investors are unwilling to take any risks at all. In
Mrs Vs case, I did not agree that her age meant the EIS was
automatically unsuitable.
There were a number of issues that the reports did
highlight: in several cases, EIS was simply recommended
because it had IHT benefits, however the clients left the
investment to their spouse which was an IHT exempt
transfer and EIS relief was irrelevant. The key takeaway
here is that you need to do more than just recommend a
product you need to actually make some proper planning
recommendations which fully address the clients problems.
In another of the cases the clients spouse had recently died
and an EIS was recommended as a means of reducing IHT.
The adviser forgot to take into account the deceased spouses
nil rate band in calculating the potential IHT liability
Liquidity is also a fairly obvious planning consideration. In
one of the upheld cases by the FOS, the adviser recommended
an EIS to a youngish client who was saving up for a house in a
few years time, but left the client with no liquidity
Summing up
EIS is a fantastic financial planning tool which offers
exceptionally generous tax benefits. When advising clients
on inheritance tax planning, it is not something you can
ignore. That said, equally, EIS is considered to be a high risk
investment by the FOS and as such there are certain things
that you need to remember to account for.
A last thought: when you look at types of risk within an EIS,
it is the stock specific risk that is most relevant and systemic
risk is less of an issue. EIS
Initial
investment
Net profit
(loss)
Total return
post tax
1 investment fails
100
(42)
58
2 lose 30% of initial investment
200
200
4 break even
400
120
520
2 return 1.3 x investment
200
120
320
1 returns 5x money
Total return
100
430
530
1000
631.50
1,628
17
BPR & Tax Planning

Tony Mud, Tax & Trusts specialist at St. Jamess Place, explores an
option thats often overlooked
Business property relief (BPR)

solutions have, and continue, to
evolve with investment options
designed to cater for a variety of
client requirements; including
varying levels of risk and return.
When it comes to tax planning
however, there are a number of
benefits common to the vast majority
of the solutions on offer.
These include:
Speed of IHT relief
Access and control
BPR falling outside of the nil rate band
Transfers between spouses do not
reset the two year qualification period
Replacement rules preserve BPR
qualifying status, provided proceed
of qualifying investments are replaced
within three years.
Inheritance tax (IHT) can be a
complex issue with personal, political,
economic and indeed emotional
implications, making it an area that
many clients struggle to get to
grips with.
IHT can have significant implications

for clients and their families, and the
variation in personal circumstances,
needs and motivations can make
planning a demanding area. BPR
arrangements have a significant part to
play and the following are examples of
just how valuable such solutions can be.
Elderly Clients or Those in
Poor Health
Many estate planning solutions
either require a client to survive a
period of seven years, or, rely on them
being able to arrange life assurance.
For the elderly, or clients in poor
health, the fact that planning involving
BPR is affective within two years and
does not require underwriting, can be
of significant value.
This aspect can be further enhanced
where the advisor is dealing with a
couple who may both be elderly and/
or infirm. On the assumption their
wills pass any BPR assets to each other
on first death, and then just one of the
couple survive a period of two years,
the exemption will be available on the
entire investment irrespective of who
dies first.
Finally, if a client has sold assets
qualifying for BPR within the last
three years - perhaps a business or
qualifying AIM shares - a sum equal to
the proceeds could be invested, and in
this way, requalify immediately without
the usual two year qualifying period.
Attorneys and Deputies
When an individual loses mental
capacity their financial affairs will be
dealt with either by an Attorney or
18
a Court Appointed Deputy. In these

circumstances significant limitations
are imposed in relation to lifetime gifts
(for Attorneys, Section 12 of the Mental
Capacity Act 2005).
Similar limitations are normally
placed upon Deputies and while it is
possible under a Continuing Power of
Attorney in Scotland, for them to be
given the power to make gifts, it is still
unusual. As the individual who has
lost capacity cannot therefore make
gifts either out right or into trust;
directly or via his Attorney/Deputy, the
Mrs A is 87, has a significant estate
but suffers from Vascular Dementia.
She is incapable of looking after her
own affairs. She qualifies for NHS
continuing care, and consequently
does not have to contribute to
the cost of her care fees. Her son
and daughter, who are her sole
beneficiaries, hold a Lasting Power of
Attorney. They are concerned about
the IHT liability on their mothers
estate and would like to undertake
some planning. They are aware that
as their mother has lost capacity,
their IHT options are restricted as
their powers as Attorneys do not
extend to making substantial gifts.
Keen to avoid an application to
the Court of Protection (a costly
and time consuming exercise)
which may permit them to engage
in a strategy of gifting, they elect to
invest in a BPR product. After two
years this provides 100% IHT relief
and importantly the assets remain
registered in Mrs As name i.e. there
has been no gift.
Inheritance Tax (IHT)

can be a complex
issue with personal,
political, economic
and indeed emotional
implications
ability to make an investment that will

become exempt from IHT after two
years, can often be the only solution.
Combining BPR and Trusts

It is a fairly common scenario; both
husband and wife are on their second
marriages, both with children from
their first marriage and with separate
finances. While they may have agreed
that their own money will be passed to
their own children upon their death, one
partner may have a much higher income
so want to ensure that their spouse
receives sufficient financial support, in
the event of his or her own death.
The simple solution to this situation
is to leave the income from the richer
partners capital to their spouse in
their will. Then, on second partners
death, the capital is to be distributed
to the first partners children from the
first marriage. This is an immediate
post death interest trust or interest in
possession trust. However, the value of
the trust will be deemed as an asset of
the second partners estate, and, as such,
liable to IHT.
If the interest in possession trust
were to invest in a BPR product, then
after two years, assuming the second
partner survives his or her spouse by
this period, and the arrangement is
held until the time of his or her death,
then the trust assets, to the extent that
they are invested in BPR solutions,
will be exempt from IHT. This strategy
would also enable the full amount of the
second partners own nil rate band to

be applied against his or her own estate
when they die, thus protecting it for the
full benefit of his or her own children.
Miss B is 62 and owns a
successful trading business.
Unfortunately, having worked
hard to build up her business, is
diagnosed with a debilitating illness
and would like to sell and retire
so that she can enjoy the rest of
her life. The nature of the business
means that it already qualifies for
BPR. However once the shares are
sold, the proceeds will potentially
be liable for IHT, if, as seems likely,
Miss Bs death occurs in the short
term. She is concerned about the
effect the IHT charge will have
on the bequest she would like to
leave her nieces and nephews.
However, if Miss B sells her shares
and invests the proceeds into a BPR
qualifying arrangement, the funds
will continue to receive BPR relief
without interruption, provided the
investment is made within three
years of the sale of her business. In
this way, even if her death occurs
shortly thereafter, the purchase
of the BPR shares, this part of her
wealth will remain exempt from
IHT. If her death does not happen
in the short term, she still retains
full access and control over her
investment should she need it in
the future.
19
BPR and Tax Planning
Given the attractions

of BPR investment
solutions, it is not
surprise that they are a
subject on HMRCs radar
Business Owners
For many business owners their
business offers the perfect shelter
from IHT. However, when the business
is ultimately sold the protection
from IHT will be lost. This need not,
however, be the case.
BPR - A Gateway to Discretionary

Trusts
In 2006 the government made some
fundamental changes to the taxation of
trusts. This effectively left discretionary
trusts as the last remaining type of
flexible IHT efficient trust. However,
gifts to discretionary trusts in excess of
the nil rate band are subject to a 20%
up-front chargeable lifetime transfer
tax. In practice, due to the grossing up
rules, this charge is actually 25% on the
settlor in most occasions.
This can be avoided if the investment
to be placed into trust is held in a BPR
qualifying asset for two years prior
to being moved into the trust, as this
eliminates any chargeable lifetime
transfer. Furthermore, where monies
going into the discretionary trust are
20
within three years prior eligibility

for BPR, it is possible to make a BPR
investment and immediately transfer
the funds into the discretionary trust;
again avoiding any chargeable lifetime
transfer. It is important to note, however,
given the current political climate in
respect of tax avoidance, that this latter
solution should not be pre-ordained.
Finally, a Word of Warning
Given the attractions of BPR
investment solutions, it is no surprise
that they are a topic on HMRCs radar.
The Finance Act 2013 introduced
anti-avoidance provisions specifically
to deal with one type of planning using
BPR which it considered at least against
the spirit of what parliament intended.
The measure introduced by the Finance
Act concerns the basic rule that IHT is
charged on the net value of an estate
after deduction of liabilities. If, prior
to the 6 April 2013, an individual died
with an outstanding debt that was used
to purchase a BPR investment, their
estate affectively got double benefit for
IHT purposes.
Under the new provisions, where a
liability is attributed to financing the
acquisition of property which qualifies
for BPR, the liability will reduce the
value of the investors estate only if it
is paid out of the estate in money or
monies worth. This is to ensure that
loans financing the purchase of exempt
or relievable property are deducted
from the value of the assets qualifying

for relief, such that there is no double
tax benefit.
BPR solutions are now firmly
established, reasonably well
understood and offer a plethora
of potential solutions in the estate
planning market. One misconception
remains however, that they also
represent an alternative strategy to the
more common IHT mitigation tools. The
reality is that BPR should be seen as a
Mr C borrows 400,000 and
purchases an investment qualifying
for BPR. He dies four years later
and his BPR investment is now
valued at 500,000. Is subject to
BPR at 100% and therefore exempt
from IHT. He also has property
worth 500,000 and investments
of 450,000. Prior to the changes
the loan could have been offset
against his property or investments.
However, since the change the
loan will now be offset against
the relievable assets i.e. the BPR
Investment such that the house
and investments remain within the
taxable estate.
complimentary solution, that can be

combined with many other techniques;
almost always with interesting and
enhancing results. EIS
Tax Efficient Investing for HNW Clients
An Adviser Seminar on EIS/VCT and BPR Investments from IFA Magazine

and EIS MagazineCPD accredited
Manchester. Bruntwood Tower
London. The Capital Club
Tuesday 28th April 2015

10.30am - 1.30pm
Thursday 30th April 2015

10.30am - 1.30pm
Both of these seminars will explore the possibilities for HNW investors of all types,
and will explore EIS/SEIS, VCT, BPR and SITR investments with an impressive panel of
expert speakers. Lunch Included.
Registration is free - Full details at http://tinyurl.com/k3gtmsx
ADVERTORIAL
Clear Round
INS Rosehill Enterprises PLC
Staying one jump ahead is important for any investor, but INS Rosehill
Enterprises PLC is literally giving people a chance to take a leap forward with
their portfolios.
Established in 2013, Rosehill is an unquoted public company and plans to
generate attractive investment returns by backing successful show jumping
horses. The company focuses on the identification of horses, then their purchase,
development and eventual sale. The management team behind the company has
a proven track record in this area and have already shown the profitable nature of
the concept.
Rosehill is planning to raise around 4m which will fund the training and
development of horses which can cost from 350,000 to 1 million per horse. It is
anticipated that anywhere between three and eight horses will be owned at any
one stage. All horses which are owned by the company are insured for loss of use,
mortality and theft.
As for returns, Rosehill is targeting a minimum of 167p for every 100p invested
over a four year period. This excludes any tax breaks that may have been received.
The company has received advance assurances from HMRC that the Companys
trade will qualify under the Enterprise Investment Scheme.
International Credentials
Rosehill is run by founder and managing director Caroline Wilks and has two top
international show jumping horse talent spotters in the shape of Duncan Inglis and
Henk Nooren. The pair, who have an international reputation, have over 15 years
experience in training the worlds leading horses within the sport. The company
believes that there are a limited number of experts who can operate at this level of
the sport, who have the necessary combination of skills, expertise and network of
contacts to identify the horses.
The companys management already has an impressive track record, bringing on
and selling horses at a high rate of return.
Wilks says that: Over the past five years, show jumping has become a major
league sport which attracts and generates huge amounts of money. The demand for
horsepower at the very top of the sport is driving up the prices of horses that have the
potential to be world champions. Show jumping horses ready to compete at World
Championships, or the Olympics, have commanded prices of between 1m and 5m.
Also, the industry continues to experience significant growth, with increasing
interest, involvement and inflow of money from new entrants around the globe,
including the Middle East, South America, Eastern Europe and the Far East.
Wilks points to the fact that there are significantly more buyers now than there
were 15 years ago and whats more, they have more to spend than ever before.
Parties are willing to spend over 1m on show jumping horses.
Helping the elite nature of the sport are quality sponsors such as Longines Global
Champions Tour, the Gucci Masters in Paris and the Rolex Grand Slam Series,
attracting wealthy clients and nations.
Last word goes to Wilks: I am committed to maintaining an investor relations
programme, forwarding regular updates with video links, photographs and trading
updates in addition to the Annual Report and Accounts. The Company intends to
provide Investors with the opportunity to exit from June 2018. I strongly believe the
Company is an attractive, asset backed, alternative investment. EIS
www.eis.magazine.com March 2015
23
Life After Renewables

EIS Magazine talks to Claire Ainsworth, Managing Partner of specialist
investment manager Triple Point
As most of us are aware, 5th April marks the final

closure of the opportunity to invest in renewable energy
companies through EIS, SEIS or VCT funds. And theres
nothing quite so calculated to concentrate the mind as a door
thats about to shut for ever.
It all leaves Triple Point, a manager with particular
strengths in renewable energy and social causes, in
something of a fix as far as its EIS and VCT schemes are
concerned. In particular, the 5th April deadline marks the
end of the road for Triple Points Hydro VCT, one of the last
opportunities to invest into Feed-in Tariff based renewable
energy assets through a VCT. The fund, it says, aims to
deliver a tax-free IRR of 10% over a 16 year timespan, taking
advantage of what it calls long term, predictable, and RPI
linked revenue streams which can be distributed as tax free
dividends.
Triple Point was originally founded in 2004, it says, to
bring together complementary skills and experience in three
core disciplines: structured finance, tax and investment.
It stresses that it doesnt give VCT and EIS advice rather,
it relies almost completely on advisers for its distribution
channels. And during those ten years, it claims, it has sourced,
arranged and managed more than 250m of VCT and
EIS investments.
Capital preservation is the

overarching priority for the group
& renewables are not particularly
correlated to market performance
HNW Clientele
Yes indeed, but how is all that going to change now
that the doors to eco power investment are closing? We
spoke to Managing Partner Claire Ainsworth, who is also
Chief Investment Officer and Chairman of the Investment
Committee at Triple Point.
The key attraction of these renewables funds, Ainsworth
says, is not so much that they reflect a deeply principled
stand (although they do that as well), but that they aim to
target capital preservation the overarching priority for
the group, she says - and they are not particularly correlated
to market performance. Thats something that a largely HNW
clientele particularly prizes, she says.
But yes, its undeniable that the biggest public focus of the
24
last years activity has been in funding a pipeline of hydro

VCT projects, TP Income and TP 11 - of which two were due
to close this year. So whats the impact likely to be?
Up to a point, of course, the existing VCTs and the present
EIS funds will carry on regardless as a management activity.
But that doesnt quite address the challenge of the moment.
A Service, Not a Fund

So whats going to take over the focus of new issue
attention if we dont have renewables? Well, she says, a lot of
it is likely to move toward the Triple Point EIS, a discretionary
management service which she says is heavily committed to
small scale infrastructure investments which qualify for the
EIS tax benefits.
Its important to recognise that this is a tailored portfolio
service rather than a unitary sort of fund a direction which
Ainsworth says is best able to adapt to the differing needs of a
varied clientele with different priorities and time horizons. As
a general principle, Ainsworth says, the Triple Point EIS aims
to invest its fundholders money within six months of them
joining the Triple Point EIS Service
It would be fair to say that this years disqualification from
alternative energy investments is likely to force a significant
change of direction for the group. Fortunately, she says,
Triple Point maintains a varied pipeline of other interests,
including businesses related to infrastructure and social
development. And that, whatever else happens, there is still a
firm emphasis on businesses with a secure customer base or
with high barriers to entry.
Socially Oriented Projects
The construction side of the EIS Service is heavily
committed, among other things, to firms which build
apartments in and around UK town and city centres for the
use of young adults, including many with disabilities or other
needs. The projects themselves, it says, have the advantage of
possessing a relatively short construction phase meaning
that they are easy to forecast. And that in turn, Ainsworth
says, ought to mean that the businesses invested in will be
able to advance-manage their project pipelines to ensure that
there is always sufficient liquidity to meet shareholders
exit expectations.
Any Further Chances for Energy?
Industry experts currently reckon that combined heat and
power systems, a Triple Point favourite, may still turn out to
be achievable in some shape or form within the allowable

EIS orbit the details may turn out to depend on how the
SITR rules take shape. Ainsworth was clear when we spoke
to her in February that the company is still interested in
biomass as an investment direction. But anaerobic digesters,
an area where Triple Point has been particularly active,
have definitely fallen under the legislative axe along with
renewable energy and will no longer be achievable in a few
weeks time.
And that really annoys the Renewable Energy Association
(REA), which has let it be known that it represents the loss
of a potentially vital revenue stream for small-scale projects
of all kinds. Around 25 anaerobic digester projects are now
likely to be shelved, it says - equating to a not-inconsiderable
20MW of potential generation, and the loss of up to 130m of
investment thats already raised for the sector.
A view that seems to chime in with Ainsworths own
comments about the renewables sector in general. From
solar to wind power, and especially among smaller projects,
theres been a funding gap, she says, and that was why Triple
Point felt that this was the way to go. And where the banks
dont want to go, thats where the opportunities were there to
be taken. Perhaps the technologies were too new, or perhaps
they sounded too complicated for the big lenders. All of
which was a further stimulus.
And Finally. SITR

But a final note seems in order. As weve said, our call
to Triple Point took place in February, before this months
spring Budget statement which also clarified the position
with regard to Social Investment Tax Relief, one of the few
remaining ways of getting into alternative energy. With the
benefit of post-Budget hindsight, we now know that there
was never any real intention to let conventional tax-effective
funds continue into renewable energy rather, SITR is to be
focused on community energy projects, which are going
to be smaller-scale.
It was all too soon for speculation. We, together
with a lot of the industry, are looking closely at
the investment rules as they develop, was
all we could squeeze out of Ms Ainsworth.
And were guessing that ingenuity will
continue to be the order of the day.
Business Property Relief

All in all, there was no sense coming from Ms Ainsworth
that Triple Point was running out of ideas for new
projects just because the dozen or so renewable
energy VCTs has been locked down into a
permanent maintenance pattern. We can
certainly expect to see more activity from the
groups existing Business Property Relief
arm, known as Navigator, which it describes
as a non-UCIS discretionary management
service arranging investment into BPR.)
25
Open Offers
EIS
Open
Now
Close
31/12/2015*
Amount to be Raised: 4m
Investment Key:
EIS
SEIS
VCT
OEIC
IHT
BPR
The Wine Enterprise Investment Scheme Limited

An asset-backed investment combining the asset class of fine wine and its distinctive
investment characteristics with the tax advantages of EIS. The Company has been
successfully trading fine wines since 2012, and, since already trading as an EIS, can
issue EIS3s promptly.
The investment team, with 60+ years combined wine investment track-record, has a
proven, disciplined trading methodology, is fully independent and contains a unique
blend of wine market knowledge, financial market background and analytical ability.
Wine stocks are bought and sold through counterparties worldwide, are stored in UK
government bonded warehousing and are insured at replacement value.
T. +44 020 7478 0901

E. adc@wineinvestmentfund.com
www.wine-eis.com
EIS
Open
Close
Now
Evergreen
Minimum Subscription: 20,000
The market is currently well below trend and its long run tendency to outperform
more traditional asset classes remains unchanged. Fine wine as an asset class has
outperformed equities, gold and oil over the last 21 years, with lower volatility,
therefore also offers risk reducing portfolio diversification.
*Closing rounds 31 March, 30 June, 30 September, 31 December 2015. Minimum
investment 10,000 and 3% available to intermediaries.
Kuber Ventures Multi Manager Platform

Kuber Ventures Multi-Manager EIS Platform, has a range of portfolios which are
each diversified across a number of Fund Managers. Through a single application
and depending on the Portfolio selected, our Portfolios allow investors to create a
diversified spread of up to 40 qualifying EIS investments.
Investors may select individual funds or choose to achieve further diversification
by investing in one of the Kuber Portfolios available.
Our Portfolio choices include:
T. 020 7478 8540

E. info@kuber.uk.com
www.kuberventures.co.uk
EIS
Open
22/12/2014
Close
31/03/2015
Minimum investment: 25,000*
T. 0207 025 8199

E. info@motionpicturecapital.com
www.motionpicturecapital.com
26
Renewable Energy Portfolio (Fund of 3 Funds) Deadline 31st March for current
tax year
Exit Focused Portfolio (Fund of 4 Funds) Deadline 31st March for current tax year
Diversified Portfolio (Fund of 9 Funds) Evergreen with a regular share allotments
Venture Growth (Fund of 5 Funds) Evergreen with regular share allotments
SEIS Portfolio (Fund of 2 Funds) Deadline 31st March for current tax year
Motion Picture Capital - HMRC-approved EIS Fund

Motion Picture Capital provides a platform for the development, financing and
distribution of film & television content as part of the Reliance Entertainment
Group. Other Reliance companies include Steven Spielbergs DreamWorks
Studios. This HMRC-approved EIS Fund offers investors access to a robust capital
preservation strategy with a unique charging and profit distribution structure. A
direct equity participation in this slate of high quality film & television projects
of a truly global scale adds significant upside potential. As with all investments,
there is the potential for risk as well as reward: investors may not get back what
they put in. EIS tax relief depends on individuals circumstances and may be
subject to change.
* (Inc. initial charge)
Open Offers
EIS
Triple Point EIS Service
Open
The Triple Point EIS Service targets investments across a range of sectors including
amongst other things infrastructure, construction and renewable energy.
Close
Now
Evergreen
Amount to be Raised: Unlimited
The investment strategy has been shaped by our extensive and successful
experience managing EIS qualifying investments, where we adopt a cautious and
meticulous approach to managing investors capital without losing the ability to
capture growth opportunities.
This enables the Service to target returns in excess of 10% per annum, taking
into account the initial income tax relief received by investors, and to target
transparent exit strategies which are designed to facilitate an exit for investors
after three years.
T. 020 7201 8990

E. contact@triplepoint.co.uk
www.triplepoint.co.uk
EIS
Octopus Eureka Enterprise Investment Scheme Portfolio Service
Open
Octopus Eureka EIS is a discretionary managed portfolio that aims to provide

investors with a broad range of tax benefits by investing in EIS-qualifying early stage
UK companies. The diverse portfolio of companies, across a range of industries and
sectors, offers the potential for higher investment returns over the long-term (more
than five years) when compared with portfolios of FTSE 100 companies.
Close
Now
Evergreen
A unique investment approach: Octopus Eureka EIS clients typically hold a portfolio
of at least 15 EIS-qualifying companies. These may be either unquoted companies or
companies that are already listed on the Alternative Investment Market (AIM), part of
the London Stock Exchange.
Investments in unquoted companies are managed by the Ventures team at Octopus,
which specialises in investing in fast-growing unlisted companies. The Ventures team
includes investment professionals from a wide variety of backgrounds, including
former entrepreneurs, professionals, academics and industry experts.
Investments in companies listed on AIM are managed by the Octopus Smaller

Companies team. They look after AIM mandates worth more than 620 million, across
a range of Octopus products.
Peto - One To Watch

Peto reports 12% savingsat Barts Health
Peto was appointed in September 2014 to support the Trust in the delivery of
savings from the off-contract spend of around 38million per year.
T. 0800 316 2067

E.salessupport@octopusinvestments.com
www.octopusinvestments.com/eis
EIS
Open
TBC
Close
TBC
Amount to be Raised: TBC
Five months into service delivery the Peto team, are achieving 12% realised
savings against a target of 4% on prior spend. This is a strong result, reinforced
by huge opportunity to increase the scope of the throughput which has
been lower than forecast to date. Peto has been working with Barts Health
procurement team, budget holders, and the Peto marketplace, peto.co.uk.
About Peto
Active in over 200 NHS trusts, Peto connects public sector buyers and private
sector sellers via an easy-to-use online marketplace, and where necessary, with
additional resources to reduce spend via its insourcing procurement service.
T. 01983 282925
E. td@ifmackinnon.co.uk
www.peto.co.uk
27
Open Offers
EIS
Open
Close
15/01/2015
31/03/2015
Enterprise Invesment Partners - The Imbiba Fund

The Fund will invest in a diverse portfolio of up to 5 businesses in the Leisure &
Hospitality sector in Central London, with the award-winning Imbiba Team as
asset managers. Imbibas outstanding track record boasts 8 EIS exits realised
with an IRR of 35% (excluding EIS tax relief). Significant personal investment by
both Imbiba and Enterprise (EIP) of up to 200,000 into each investee company.
The offer comprises 2 investment tranches of 10m in current tax year 2014/15
and 15m in 2015/16 with an industry leading performance hurdle rate at 1.50
per 1.00 invested.
T. 020 7487 8282

www.enterprise-ip.com
EIS
Open
Close
Now
02/04/2015
T. 020 3195 7100

E. sales@lgbrcapital.com
www.lgbrcapital.com
EIS
Open
Now
Close
05/04/2015
Sustainable Technology Investors Approved EIS Fund 3

Sustainable Technology Investors Approved EIS Fund 3 (STIL EIS Fund 3) is offering
exposure to a portfolio of sustainable energy companies within the Anaerobic
Digestion (AD) and Hydro sub-sectors, targeting superior risk adjusted returns with
an emphasis on downside mitigation, whilst taking advantage of EIS tax incentives.
STIL EIS Fund 3 is targeting cash returns to investors of 1.25 for a net 70p invested
(79% uplift), representing a 16% IRR, equivalent to a 30% IRR to an additional rate
tax payer entitled to EIS income tax relief. All subscriptions received by 2 April 2015
will be invested in the current tax year, allowing EIS Income Tax Relief to be claimed
in the 2014/15 tax year or carried back to the 2013/14 tax year. This is STILs third
EIS Fund with a similar focus, from a sector specialist management team with strong
investment and development track record, particularly in AD and Hydro. STIL has a
highly experienced Investment Team with a verified track record of 45% IRR from
55 sustainable energy and technology investments over 29 years and an existing
platform of two EIS qualifying businesses available for co-investment and a strong
pipeline of development assets.
This financial promotion has been approved by Sustainable Technology Investors Limited, which is authorised
and regulated by the Financial Conduct Authority (FCA) with firm reference number 221604. This promotion
is directed only at advisers who are authorised and regulated by the FCA. Investments in funds such as STIL
EIS Fund 3 are high risk, and investors may not get back all the money they put in.
Omeira Studio Partners Ltd.

HMRC-approved EIS Company backing UK talent.
Omeira Studio Partners is a UK based multi-platform content production
company created to co-finance commercial projects with the major film studios,
mitigating production risk with a confirmed route to market.
All our productions must be co-financed by a major or large independent
studio and have distribution in place prior to investment. Prior to greenlighting
productions, Omeira covers 70% of production costs with a combination of
distribution and other trade deals.
T. +44 20 7193 0205

E. info@omeira.com
www.omeira.com
28
Our film team, whose credits include Oscar winners and who have distributed
over 1000 films, have identified a slate of distributor-backed projects that fulfil
the companys criteria. There are no management fees and the Directors are
aligned with investors to share in profits.
Open Offers
EIS
Calculus Capital EIS Fund 2015
Open
Calculus Capital is a specialist in creating and managing private equity funds for
individuals. A pioneer in the Enterprise Investment Scheme (EIS) space, Calculus
launched the UKs first approved EIS fund in 1999 and has gone on to launch
14 further funds. Calculus seeks capital appreciation from dynamic, established
private UK companies across a multitude of sectors.
Close
04/06/2014
03/04/2015
Calculus Capitals experienced investment team, diligent investment process and

hands on approach has resulted in an impressive track record of investment
success, achieving 20 exits to date with an average ROI of 3.4x exclusive of
tax reliefs.
Calculus Capital is authorised and regulated by the Financial Conduct Authority.
T. 020 7493 4940

E. info@calculuscapital.com
www.calculuscapital.com
EIS
Chillingham Classics Classic Car EIS
Open
The Chillingham Classics EIS specialises in the acquisition, restoration and sale of
fine historic automobiles.

Close
Now
01/04/2015
Management team has sold over 250m of classic cars

Target return: 1.40 for every 1 invested in 3 years
Lower risk profile due to significant asset backing
Classic cars benefit from a set of distinctive drivers: Limited or no new supply, a
growing number of market participants and an increasing interest for lifestyle
and investment purposes. Collectively, these factors combine to make the
market for classic cars more robust, more accessible, and more attractive as
an alternative asset investment class. Minimum investment 10,000 and 3%
available to intermediaries.
T. 020 3752 7211

E. info@cloistersventures.com
www.cloistersventures.com
EIS
Seneca EIS Portfolio Service
Open
The Seneca EIS Portfolio Service is an evergreen discretionary management service that
offers investors the opportunity to build a portfolio of equity investments in UK based
SMEs, which are seeking an injection of capital to fund their next phase of growth.
Now
Close
Evergreen
The EIS Service gives investors a portfolio of 4-6 investments per year diversified
by sector. It targets investment returns of 1.60 to 1.80 per 1 invested (excluding
tax reliefs). Established in the Autumn of 2012, the EIS Service has completed 19
investments totalling 15m as well as several single company EIS funding rounds.
Seneca Partners (Seneca) will act as portfolio manager to the EIS Service. Seneca is an
investment manager and advisory business formed in 2010 and specialising in sourcing
and providing funding to small and medium sized businesses. It is part of the wider
Seneca stable of companies, which had over 500m invested assets and over 4bn debt
under advice.
The knowledge, experience and pedigree of Senecas investment team, combined with
their individual track records of successful investing in the SME sector, is complimented
by an extensive deal flow network in the UKs SME heartlands of northern England and
the west midlands.
T. 020 3195 7100

www.lgbrcapital.com
29
Open Offers
EIS
Open
15/09/2014
Close
27/03/2015*
Minimum investment: 10,000
T. 0207 550 5512

E. info@greatpointmedia.com
www.greatpointmedia.com
EIS
Open
Close
Now
Evergreen
Select Television Production EIS 2

The Select Television Production EIS 2 (Fund) is an alternative investment
fund providing access to new UK television production companies (Investee
Companies) that have the potential to deliver capital growth and which
qualify for tax relief under the EIS. The Investee Companies will create new
dramatic content for the UK and international markets, and will benefit from the
significant experience of the Investment Adviser, Great Point Media - a team that
possesses over 60 years combined experience in entertainment media, including
the running of production and content distribution businesses as well as major
television networks.
The team also brings with them a wealth of investment management experience,
having managed in excess of 300m of EIS qualifying media investment with
a proven cradle to grave track record of delivering timely EIS3 certificates
and value returned to investors. The Fund has an illustrative return of 1.08
(exclusive of tax relief) and will be allotting shares pre 5 April 2015 to ensure the
availability of carry back to the 13/14 tax year.
* (20 March for applications accompanied by cheque)
Blackfinch EIS Portfolios

The Blackfinch Media EIS Portfolios allows investors to access the attractive
tax benefits of EIS by investing into qualifying media companies. Our portfolio
companies target capital preservation through their predictable income streams
underpinned by intellectual property or high levels of contracted revenue.
The Music Publishing companies will create original music scores for films and
television programmes which benefit from predictable long-term royalty streams.
The Television Distribution companies will fund the production of television
programmes where the majority of revenues are known and contracted in advance.

Target returns of 1.20 for each pound invested (Ignoring tax reliefs).
Predictable returns enable portfolio companies to capture, sell or refinance their revenues
providing an expected exit strategy for investors.
T. 01684 571255
E. comms@blackfinch.co.uk
www.blackfinch.com
EIS
Open
01/01/2015
Close
TBC
Amount to be Raised: 2,000,000
T. 01983 282925
E. td@ifmackinnon.co.uk
www.x-windpower.co.uk
30
Investments based on fixed rate and pre-contracted revenue streams in a well established
industry.
Investor can benefit from the 30% income tax relief, CGT deferral &
tax-free gains.
X-Wind Power
X-Wind has developed a ground-breaking Vertical Axis Wind Turbine aimed at
the medium scale renewable energy sector. The team has drawn on its extensive
experience gained developing the worlds largest wind turbines at Vestas. Since
its launch in 2012 X-Winds core patented technology has won five high-profile
technology awards.
X-Wind visible sales pipeline exceeds 40 million. The company is also securing
commercial commitments for its 80kW turbines from customers in need to
secure energy pricing and supply. X-Wind has secured a partnership with the
UKs largest electricity user. To date X-Wind has raised 1.7 million in grants and
0.3M of equity. X-Wind currently requires 2.0M of equity funding to complete
the production of their first full-scale 80kW turbine.
Open Offers
EIS
Deepbridge - Hydro EIS
Open
The Deepbridge Hydro EIS is a discretionary managed portfolio service; representing

the last opportunity for UK taxpayers to invest in EIS-qualifying investee companies
generating long term, stable and predictable returns from the operation of hydroelectricity generating projects in the UK. The core proposition of the investee
companies identifies, through rigorous due diligence and engagement, attractive
projects in the hydroelectricity sector of the UK renewable energy industry. The
proposition involves the acquisition of established projects as well as construction
and development projects; in which case proven engineering, procurement and
construction contractors will be appointed with oversight by the Investment Manager.
By investing in such asset-backed opportunities that benefit from contractual
revenues available under the Renewables Obligation, the EIS seeks to ensure an
enduring focus upon capital preservation as well as generating stable and predictable
returns for the investor. The target return for the Deepbridge Hydro EIS is 125p
returned for every 100p invested, over 3-4 years. To ensure maximum tax efficiency
for the investor, the Deepbridge Hydro EIS is entirely investor-fee free at point
of investment.
The value of an investment may go down as well as up and investors may not get back the full
amount invested. Investments in small unquoted companies carry an above-average level of risk.
Deepbridge - Technology Growth EIS
Close
01/11/2014
26/03/2015
T. 01244 893182
www.deepbridgecapital.com
EIS
Open
The Deepbridge Technology Growth EIS represents an opportunity for investors

to participate in a portfolio of actively-managed growth-stage technology
companies, taking advantage of the potential tax benefits available under the
Enterprise Investment Scheme. The Deepbridge Technology Growth EIS is
a diversified portfolio of actively managed high-growth companies seeking
commercialisation funding. The Deepbridge EIS invests in companies that have
a proven technology, clear intellectual property and are operating in a high
growth/high value market sector.
The Fund is focused on investing in high growth companies that are seeking to
commercialise and expand, specifically in three sectors:
Energy & resource innovation; including waste water treatment and conservation, advanced
materials and renewable energy generation technologies;
Medical technology; such as medical and surgical instrumentation, devices and diagnostics;
IT-based technology; particularly Enterprise Application Software and Software as a Service.
The target return for the Deepbridge Technology Growth EIS 22.9% p.a. over a minimum of
three years; representing mid-case capital growth of 160p returned for every 100p invested.
To ensure maximum tax efficiency for the investor, the Deepbridge EIS is entirely investor-fee
free at point of investment.
Close
01/08/2013
N/A
T. 01244 893182
www.deepbridgecapital.com
EIS
Rockpools EIS Portfolio Service
Open
Rockpools EIS Portfolio Service offers an alternative to traditional EIS funds.

Rockpool creates direct private company investment opportunities for its Network
of members which includes hundreds of successful entrepreneurs and professionals
from a wide range of business sectors. Deals created for the Network are also open to
a wider audience of investors through Rockpools EIS Portfolio Service.
Now
Close
Evergreen
Rockpool targets companies which are profitable or have significant asset backing.
Asset backed sectors include crematorium operation, electricity generation,
construction project delivery, managed storage services and childrens nurseries.
Rockpools model offers full transparency and control with meet the management
sessions, regular updates, investment reviews and an on-line portal.
There are two ways to access the service:

Self-select - the investor selects which companies to invest in with a minimum of 10,000
per company
Discretionary service Rockpool selects the companies to match the investment strategy
of the investor. Minimum investment of 10,000 which will be spread across a number of
companies.
T. 0207 015 2150

E. team@rockpool.uk.com
www.rockpool.uk.com
31
Open Offers
EIS
Open
Close
Now
Evergreen
T. 0207 927 7462

E. enquiries@endven.com
www.endven.co.uk
EIS
Open
Close
Now
Evergreen
T. 020 7361 0212

E. fundenquiries@mmcventures.com
www.mmcventures.com
EIS
Open
January 2014
Close
Quarterly
Remaining Capacity 6/26m
T. 020 7408 4070

E. info@pumainvestments.co.uk
www.pumainvestments.co.uk
32
Endeavour Ventures
Endeavour Ventures offers a growth company direct EIS portfolio service with a bias
towards technology. The core team have utilised the EIS tax structure over 15 years,
and since 2006 as Endeavour introducing over 70m into qualifying companies.
Endeavour look for highly scalable businesses, experienced management, and seek
early access to into US markets where exits are often sought. They believe that growth
EIS has significant inherent risk and that total costs need to be contained. They seek
the highest degree of investor alignment possible through equity interests in investee
companies, and take an active role in developing and exiting the investment portfolio.
The best EIS investing requires patience as companies do not become successful
overnight. Endeavour invests slowly and cautiously, free from any pressure to
place a managed fund. The teams experience is that growth businesses can take
anything from 5-10 years - sometimes more - to reach full maturity, over which time
management fees of a fund can add more than 20% to the costs of an investment,
prior to management carry deductions. They make relatively few investments each
year and closely follow those companies though to maturity. They do not do SEIS.
MMC Ventures - EIS Fund

The MMC Ventures EIS Fund offers investors exposure to a portfolio of hard-toaccess fast growing private companies, combing real capital upside potential
with generous EIS tax reliefs.
Founded in 2000, MMC is regularly rated as one of the top 5 most active venture
investors in the UK, investing circa 20 million per annum in a combination of
new deals and follow-on capital for existing portfolio companies. An investor in
the MMC EIS Fund can expect a portfolio of 8-10 companies within 12-15 months
of subscribing. The MMC EIS Fund is categorised as a generalist product but they
have a clear investment focus on technology-enabled sectors where the UK is a
world leader - particularly financial and business services, business software,
digital media and e-commerce. MMCs fundamental approach is to invest on the
commercial merits of each transaction, viewing the EIS tax benefits as highly
desirable but not the reason to invest. This approach is reinforced by their policy
of co-investing their EIS Fund alongside other funds they manage that do not
qualify for EIS tax relief.
PUMA INVESTMENTS - PUMA EIS

Puma EIS employs an investment strategy similar to that successfully deployed
by the Puma VCTs and aims to provide investors with downside protection in
a carefully managed portfolio. Building on Pumas established track record in
tax efficient investments, Puma EIS targets asset-backed businesses aiming to
provide downside protection for investors through a portfolio exposure to HMRC
pre-approved companies.
Successful Deployment: Puma EIS was the largest fundraise of any new EIS
strategy seeking lower risk launched in 2013/14 tax year. All funds raised were
successfully deployed into companies with HMRC Advanced Assurance before
the end of the tax year end. Allotment Dates: The discretionary management
service has no fixed closing date. Puma EIS intends to make quarterly allotments
with an allotment shortly in advance of the tax year each year. Strong Track
Record: Building on the market leading track record of the Puma VCTs which
operate a similar asset-backed investment strategy. Realisations: It is envisaged
that investments in Qualifying Companies will be realised within 3 to 5 years.
Investment Size: Minimum subscription is 25,000 with no upper limit.
4 EXCITING EIS / SEIS OPPORTUNITIES

BROUGHT TO YOU BY INNVOTEC
Anglo Scientific EIS 2015
The seventh annual EIS Fund from the Innvotec / Anglo Scientific collaboration provides further opportunity for
private investors to invest behind the well regarded, specialist and dedicated team of technology entrepreneurs that is
Anglo Scientific, under a discretionary management agreement with Innvotec, one of the UKs longest established VCs
backingangloscientific
opportunities in the broad technology sector.
C R E A TING SOLU TIONS
Anglo Scientific has built a portfolio, all EIS qualifying, of highly promising tech-enabled companies and Anglo Scientific
2015 EIS, like the predecessor funds, provides the opportunity to invest in five or six of these companies.
Performance across the earlier funds is impressive, an average gain on portfolio cost of 77% equating to a notional IRR
across all Funds of 19%, with no fund being valued below cost.
Startup Funding Club SEIS 2015

The second annual SEIS Fund from the Innvotec / Startup Funding Club collaboration, the first having been deployed
across a well-diversified, fifteen company portfolio.
Startup Funding Club is one of the most successful boutiques working with companies seeking seed and early-stage
finance, especially those companies that own proprietary intellectual property (IP) capable of being exploited globally
and whose founders possess the stamina and knowhow to meet the challenge.
The Startup Funding Clubs network ensures that opportunities are sourced from many of the UKs best regarded
incubators and accelerators. Whilst the portfolio will have a technology-bias, it will also include product based
companies and those in the food sector.
Integral to the success of the Fund is a mentoring programme in support of the entrepreneurs.
Odyssey Mission SEIS 2015

UK based private investors have a novel opportunity to invest in the Innvotec-managed Odyssey Mission 2015 SEIS
Fund, a portfolio of early stage businesses led by Asian Entrepreneurs. Investors have the prospect of strong capital
appreciation whilst helping an affinity group and obtaining attractive personal tax reliefs in so doing.
The Fund is geared to providing start-up /early stage funding and mentoring support to the best of the next
generation of Asian graduate entrepreneur that wish to build their businesses in the entrepreneurial-friendly United
Kingdom, some of whom will require a Tier 1 graduate entrepreneur visa so to do.
The Odyssey Mission itself is a big project of which the SEIS Fund is the startpoint.
OION SEIS 2015
2015
SEIS
FUND
The OION 2015 SEIS Fund is an Innvotec-managed growth fund, providing private investors with an opportunity to
invest in a portfolio of early stage businesses located in Oxfordshire and its surrounds, whilst offering the prospect of
strong capital appreciation and at the same time accessing attractive personal tax reliefs.
The companies that will form the OION 2015 SEIS Fund will use the proceeds of investment to advance them on
their business growth curve and it is at these earliest stages of commercial exploitation that there is the potential to
generate significant capital appreciation.
The Fund benefits from the participation of Oxford Investment Opportunities Network (OION) in generating quality
dealflow and the provision of mentors to support the entrepreneurs.
For full details on any of the above EIS / SEIS Funds or any other information please contact Innvotec on:
Tel: +44 (0) 20 7630 6990
Email: info@innvotec.co.uk
Web: www.innvotec.co.uk
Issued and approved by Innvotec Limited, Business Design Centre, Suite 310, 52 Upper Street, Islington, London, N1 0QH
Innvotec Limited is a registered company in England & Wales. Registration Number: 2030086
Innvotec Limited is Authorised and regulated by the Financial Conduct Authority.
VA0115
Open Offers
EIS
SEIS
Open
Close
02/09/2014
01/04/2015
T. 020 7416 7780

E. contact@downing.co.uk
www.downing.co.uk
EIS
SEIS
Open
Close
January 2015
Evergreen
T. +44 (0)845 512 1000

E. nicolajohnston@chfmedia.com
www.chfenterprises.co.uk
EIS
Open
26/01/2015
SEIS
Close
30/04/2015
Amount: Min 3m - Max 8m
T. 0330 223 1430

E. Talong@merciafund.co.uk
www.merciafund.co.uk
34
Downing Growth 4 EIS & SEIS

Downing Growth 4 invests in high risk, high potential return investment
opportunities, whilst also providing access to attractive EIS and/or SEIS tax
reliefs (including 30%-50% income tax relief). It has a focus on early-stage UK
technology companies, and its principal sectors of interest are consumer internet
& mobile, enterprise software, and industries that are becoming more dependent
on technology, such as healthcare, education, finance and defence. Since its
launch in September 2014, it has invested in a portfolio of seven companies,
with more currently being completed. Investors tax forms are expected within
six months of investing in the fund. Investments come from a variety of sources
and we have relationships with several joint venture partners. In particular, we
are the preferred partner to the Defence, Science & Technology Laboratory
at Porton Down - a division of the Ministry of Defence - which provides us
with access to opportunities coming out of this group. The fund is managed by
Downing Ventures, a division of Downing LLP, and is led by Matt Penneycard,
who has been investing in this space for over ten years, both in the UK and the
US. Our team includes an individual based in the US, which is to the benefit of our
portfolio companies, many of whom seek to expand in that direction.
CHF Enterprises
CHF Enterprises Ltd (CHF) presents an exciting and unique opportunity for UK
tax payers to invest in both SEIS and EIS qualifying media production companies,
whilst also benefitting from risk mitigation in the form of seed and traditional EIS
reliefs and Government backed Animation Tax Credits.
The company has a strong and proven track record: over the past 40 years,
Cosgrove Hall have produced iconic childrens programmes such as Danger
Mouse, Postman Pat, Roary the Racing Car and others, and CHF has a multi
BAFTA and International Emmy award winning creative team One of its recent
shows, Pip Ahoy! was funded via CHFs own in-house EIS offering and is now on
air on channel 5s Milkshake every weekday for 5 years, to great media acclaim.
The group has multiple revenue streams from Broadcast and License and
Merchandising sales with unlimited investment returns. All shows are produced
in the UK and qualify for the Governments Animation Tax Credits.
Mercia Fund Management - Mercia Growth Fund 4
(75% EIS, 25% SEIS)
Mercia Fund Management, a wholly owned subsidiary of Mercia Technologies PLC,

is a leading investor in UK technology; specialising in the commercialisation of
businesses with high growth potential across a range of technology driven sectors in
which deep expertise is held.
Mercia Growth Fund 4 will utilise the hybrid structure of Mercias previous four
tax efficient funds, combining EIS and SEIS, to invest in a diversified portfolio of
innovative technology companies. The hybrid approach aims to offer an optimal
balance between capital growth, portfolio risk and time horizon whilst maximising
the tax advantages available.
Mercia has partnerships with nine universities, including Warwick, Leicester and
Birmingham, and has a leading industry position which ensures a consistent, high
quality pipeline of deal flow opportunities.
Mercia Growth Fund 4 will target exit realisations between three and seven years.
Mercia Technologies PLC, which listed on AIM in December 2014 raising 70m, aims
to provide later stage capital to the emerging stars in the Mercia Fund Management
portfolio, offering a unique venture capital model with key strategic advantages
for investors.
Open Offers
SEIS
Blackfinch SEIS Music Portfolios
Open
Close
Now
The Blackfinch SEIS Portfolios allow you to access tax benefits and participate
directly in the success of a portfolio of recording artists supported by the major
record labels. Our SEIS companies will fund the recording and marketing of
albums from existing music artists.
Evergreen
A unique opportunity to participate directly in the success of music albums

backed my Major labels.
Investors benefit from all revenues from the master recording of each album
in first position including album and single sales, digital downloads (itunes)
and radio/TV airplay.
A simple one-shot investment that does not require follow-on funding.
Investors can benefit from 50% income tax relief, 50% capital gains tax
relief, 100% inheritance tax relief and loss relief.
For more information please contact our intermediary team on 01684 571255
T. 01684 571255
www.blackfinch.com
SEIS
Tesseract Interactive SEIS Fund 5
Open
The Tesseract Interactive SEIS Fund 5 provides investors with access to

companies operating in the interactive entertainment sector. It is the 5th such
fund to be offered by Daedalus Partners, an experienced SEIS Fund manager with
over 17.5m of SEIS funds under management.
21/11/2014
Close
03/04/2015
The Tesseract funds have already invested in over 60 developers of applications

and services for mobile devices, online games and downloadable content for the
console/handheld market. It aims to achieve an attractive risk/reward profile
through a balanced blend of investments in high-growth, start-up companies
with potential for significant equity returns, and other investments in small
enterprises exploiting established franchises, IP and creative teams.
T. 020 7866 5452

E. info@daedalus-partners.com
www.daedalus-partners.com
SEIS
Select Media SEIS 5
Open
The Select Media SEIS 5 (Fund) will invest into shares of early stage media
companies that have the potential to deliver significant capital growth via
the creation of intellectual property and which qualify for tax relief under the
SEIS. The Manager, Great Point Investments, will pursue a balanced strategy to
ensure diversification through different business models across multiple sectors
of the entertainment industry including television development, music, book
publishing, film, new media and creative technology.
The Fund will benefit from the extensive experience of the Investment Adviser,
Great Point Media - a team that possesses over 60 years combined experience
in entertainment media, including the running of production and content
distribution businesses as well as major television networks. The team also
brings with them a wealth of investment management experience this is their
fifth SEIS offer to date having already raised approximately 7m of SEIS capital
spread across 50 early stage media companies and delivered SEIS3 certificates
within 9 months of previous offers closing.
23/02/2015
Close
29/05/2015
T. 0207 550 5512

E. info@greatpointmedia.com
www.greatpointmedia.com
35
Open Offers
SEIS
Open
Now
Close
31/03/2015*
Amount to be Raised: Up to 3m
The Portillion Capital Shariah Compliant Seis Fund

The Portillion Capital Shariah Compliant SEIS Fund (the Fund) is open to all
investors but it gives an opportunity for those whom Shariah Compliance and ethical
investing is of importance to invest with confidence that guidelines and procedures
are in place to ensure that the Fund and all the Investee Companies are Shariah
compliant and will remain so throughout the investment period.
Portillion Capital Limited are working together with Seed Mentors who have provided
mentoring services to a number of SEIS funds and have the ability to introduce
potential investee companies and carry out due diligence prior to investment as well
as providing ongoing support for these companies.
T. 07817 997562
E. s.randall@seedmentors.co.uk
www.seedmentors.co.uk
SEIS
Open
Now
Close
31/03/2015*
Amount to be Raised: Up to 3m
Seed Mentors both seek out and have many companies approach them for assistance
in securing start-up funds. Seed Mentors believes, with the help of IFAAS (A
specialised Shariah compliance service provider based in the UK serving as the
Shariah Adviser to the Fund), there will be no difficulty in finding a sufficient number
of suitable Shariah Compliant, socially responsible and ethical start-up companies for
investment by the Fund.
* Closing dates: 31 March and monthly up to end June 2015
Seed Mentors The Third Seed Advantage SEIS Fund

Seed Mentors were one of the pioneers of Seed EIS investing.
The first two general SEIS funds from Seed Mentors have been closed and successfully
invested.
So has the first Dragon Fund which was promoted in conjunction with Finance Wales,
and which was designed to support start-up businesses in Wales.
That has led on to a range of specialist Seed EIS funds, which includes the second
Dragon Fund, Thistle and Shamrock Funds, a Shariah Fund and a wine Fund.
And, of course, the ever popular generalist fund, the Third Seed Advantage SEIS Fund
is available for investors interested in a broad spread of investments, across different
industry sectors.
T. 07817 997562
E. s.randall@seedmentors.co.uk
www.seedmentors.co.uk
VCT
Open
Now
Close
*See Description
T. 020 3195 7100

www.lgbrcapital.com
36
EIS Magazine January/Febuary 2015
The huge differentiator of Seed Mentors is in the name. We put key mentors around
all the companies that we invest in, to ensure that they receive the best advice in
terms of finance, IT, marketing and HR. It is a process that is working, and delivers us
a very strong deal flow of companies to invest in from our professional connections.
* Closing dates: 31 March and monthly up to end June 2015
Unicorn AIM VCT

The Unicorn AIM VCT is an established VCT managed by Unicorn Asset Management
since launch in 2001, targeting capital preservation, tax-free dividends & capital growth.
Unicorn Asset Management is an independently owned and managed company
specialising in UK equity small cap and AIM stocks. The well-resourced investment
team has over 100 years combined experience. Unicorns investment philosophy
targets profitable, cash generative companies that have strong management teams
and a leading position in specialist but growing markets.
The VCT provides investors with access to an established and diversified portfolio of
60+ AIM and smaller companies, over 60% of which have paid dividends in the last
12 months.
The VCT has a history of steady tax-free dividend distributions, with over 37m
paid out in aggregate to shareholders to date. Over the past 5 financial years (to 30
September) the VCT has paid 26p in dividends to investors.
The VCT is the largest AIM-focused VCT in the market and also the highest rated AIMfocused VCT by Martin Churchills Tax Efficient Review.
Close: 1 April 2015 for 2014/15 tax year, 30 June 2015 for 2015/16 tax year
(if not fully subscribed beforehand)
Open Offers
VCT
Downing ONE VCT Hybrid Generalist
Open
Diversification: top-up with immediate exposure to a mature portfolio of

approximately 100 companies.
Hybrid generalist focus: 61% of the current portfolio is unquoted with
an asset-backed focus; 39% are growth companies, mainly AIM-listed,
and managed by Judith MacKenzie, award-winning manager of our topperforming micro-cap OEIC (out of 400 Funds invested in the UK (All
Companies, Equity Income and Small Cap) in 2014, source: Trustnet /
F.E.Analytics / Downing).
5.7% p.a. tax-free target income: on net of income tax relief cost.
Exit: the VCT buys back shares at a 5% discount to NAV, subject to cash
resources and regulations.
T. 020 7416 7780

www.downing.co.uk
VCT
Open
December 2014
Downing THREE VCT is a planned exit VCT focusing on growing UK businesses

that trade from freehold premises, including childrens nurseries, health clubs
and pubs.

02/04/2015
Downing THREE VCT Planned Exit
Close
December 2014
With net assets of approximately 73 million across a variety of sectors, the

Downing ONE VCT offers diversification to investors seeking long-term
tax-free income.
Close
02/04/2015
57% tax-free target profit: on subscription (net of income tax relief) over
6 years.
Planned exit strategy: tax reliefs are accessed over the shortest period
possible, with a focus on risk management by seeking asset-backed
businesses.
Exit: Downing THREE will seek to pay exit proceeds to investors at full value
(no discount to NAV).
Our expertise: we have specialised in backing asset-backed businesses for
over 15 years, investing more than 100 million into businesses of this type
over the last three years.
T. 020 7416 7780

www.downing.co.uk
VCT
PUMA INVESTMENTS - PUMA VCT 11
Open
Puma VCT 11 builds on the market-leading track record of previous VCTs. Puma
VCT 11 will adopt the same, proven investment strategy primarily investing
in established businesses in the form of ordinary equity together with senior
secured loans.
November 2014
Close
04/04/2015
Remaining Capacity 12/30m
Strong Track Record: Puma VCTs I to V head their peer group for total return.
Puma VCT V, the latest VCT to close delivered a total return of 106.3p per share,
(equivalent to a 9.4% annual return) making it the highest return to date for a
limited life VCT.
Dividends: Target average annual tax-free dividend of 5p per share commencing

from April 2017.
Five Year Life: It is envisaged that after 5 years, the Directors will propose a
special resolution for shareholders to vote on the process of winding-up the
Company. Investment Size: Minimum subscription level is 5,000.
T. 020 7408 4070

37
Open Offers
VCT
Open
Close
15/10/2014
30/04/2015
Triple Point Hydro VCT

Triple Point has been working with the specialist hydropower developer, Green
Highland Renewables, and the Forestry Commission Scotland on a portfolio of run-ofriver hydroelectric power schemes since 2010 and has 7 schemes under construction
and 1 fully operational. Triple Points Hydro VCT (a share class of Triple Point VCT
2011 plc) targets long term, inflation linked income and is an opportunity for investors
to finance companies which will have the exclusive rights to construct, operate and
maintain the next tranche of projects in this portfolio.
Hydro VCT aims to deliver:

Attractive Returns: a target tax free IRR of 10% over 16 years.
Predictability: tried and tested technology.
T. 020 7201 8990

IHT
Open
Close
Evergreen
Evergreen
T. 020 3195 3500

E. info@stellar-am.com
www.stellar-am.com
IHT
Open
Evergreen
Close
Evergreen
T. 020 3195 3500

www.stellar-am.com
38
Income: long-term, tax-free, and inflation linked over 15 years.
Quick Payback: the rapid return of investors initial capital outlay.
Diversification: returns which are uncorrelated with stock market investments.

Tax Benefits: that are available to VCT investors.
A major attraction of Hydro VCTs investments is their ability to benefit from Feed-in
Tariffs (FITs). Under the Government mandated FIT regime, producers of qualifying
renewable energy are guaranteed minimum, inflation-linked, tariffs.
Stellar Asset Management Stellar AIM IHT Portfolios

Stellar AIM IHT Portfolios provides clients with a discretionary managed, diversified
portfolio of AIM listed companies with the option of a unique insurance policy to
protect investors from any future loss of value.
Each portfolio will be made up of AIM shares that qualify for Business Property
Relief, providing 100% IHT relief after just two years while enabling clients to keep
control and ownership of capital. Stellar AIM IHT Portfolios therefore creates a
straightforward IHT solution while offering potential for growth and easy access
& liquidity for those who wish to transfer existing stocks and shares or have cash
holdings. The investment strategy exercises a well diversified, disciplined stock
selection policy which focuses on long-term capital growth, and risk mitigation.
This process entails the detailed analysis and selection of companies that must
exhibit a market value supported by tangible assets or yield. The average market
capitalisation of companies in our portfolios is c180 million and many are
household names.
We offer a unique, but optional insurance policy across our range of IHT products
to protect investors from any future loss of value. The policy provides investors and
advisers with peace of mind and ensures beneficiaries always receive the original
amount invested.
Stellar Asset Management Stellar AIM IHT ISA

Stellar AIM IHT ISA provides clients with a diversified portfolio of AIM listed
companies in a tax free ISA wrapper with the option of a unique insurance policy to
protect investors from any future loss of value.
Our AIM IHT ISA is one of the most tax-efficient investment opportunities available
on the market. It is free from income tax, capital gains tax and, after just two years,
inheritance tax.Each portfolio will be made up of AIM shares that qualify for Business
Property Relief, providing 100% IHT relief after just two years while enabling clients
to keep control of capital, without losing any of the benefits of their existing ISA.
Stellar AIM IHT ISA therefore provides individuals with a straightforward IHT
solution, offering potential for growth and easy access, for existing ISA transfers and
new ISA investment.
The investment strategy exercises a well-diversified, disciplined stock selection policy
which focuses on long-term capital growth and risk mitigation.
We offer a unique, but optional, insurance policy across our IHT products to protect
investors from any future loss of value. The policy provides investors and advisers
with peace of mind and ensures beneficiaries always receive the original amount
invested, creating the UKs only fully insured ISA with IHT relief.
Compatibility: Requires IOS 6.0 or later. Compatible with iPhone, iPad, and iPod touch. This app is optimized for iPhone 5. Available on Android.
Twenty Four Seven

IFA Magazine, Britains premier online
portal and print publication for
financial advisers, has launched its ver y
own app designed to help you stay
up to date with all the latest financial
and economic news as it happens.
Main
Features:
Reviews
Features
Funds
Market and Economics
Trading Expert
FCA
Compliance
Jobs
Open Offers
IHT
Open
October 2014
Close
Open Ended
PUMA INVESTMENTS - PUMA AIM INHERITANCE TAX SERVICE

Puma AIM Inheritance Tax Service is a discretionary service that seeks to
mitigate Inheritance Tax by investing in a carefully selected portfolio of AIM
shares. The Puma AIM Inheritance Tax Service is also available in ISAs.
Portfolio Service: A discretionary portfolio service that seeks to deliver long

term growth focusing on quality companies listed on AIM. Inheritance Tax: It
is intended that investors will benefit from relief from Inheritance Tax provided
investments are held for at least 2 years prior to and at the point of death.
Minimum subscription of 15,000 with no maximum.
T. 020 7408 4070
IHT
Open
Close
June 2013
Monthly
T. 020 7408 4070

IHT
Open
Now
Close
Evergreen
Available in ISAs: Whilst ISAs are extremely tax efficient during the holders
lifetime, upon death ISA balances may be subject to a 40% IHT liability. Investing
in a portfolio of qualifying AIM stocks allows holders to mitigate Inheritance Tax
while still retaining the benefits of an ISA. ISA Transfers can be accepted from
existing providers as well as new investments.
PUMA INVESTMENTS - PUMA Heritage

Puma Heritages core focus is on secured lending. Its primary objectives are
to preserve capital and mitigate risk. Strategy: Conservative trading strategy
focused on secured lending. Flexibility: Choice of income or growth shares and
ability to switch between them. Directors: Three experienced Directors bringing
a multi-disciplinary approach.
Experienced Adviser: Puma Heritage has appointed Puma Investments as its
trading adviser. Aligned Interests: The interests of Puma Investments (the
trading adviser) and Shareholders are entirely aligned: Puma Investments will
not receive any performance fees and its annual advisory fees are only paid in
full if the minimum target annual return is paid in full. Liquidity: Twice yearly
opportunity to access capital (subject to terms set out in the Prospectus).
Subscription Amount: Minimum subscription of 25,000 with no maximum.
Inheritance Tax: It is intended that a subscription for shares in Puma Heritage
will benefit from relief from Inheritance Tax provided the shares have been held
for at least 2 years prior to and at the point of death.
Blackfinch IHT Portfolios

Blackfinch provides tax-efficient investment solutions that are transparent
and compelling. Our services provide real solutions to real financial planning
challenges faced by individuals today.
Blackfinch IHT portfolios are designed to mitigate Inheritance Tax (IHT) after 2
years of investment into our companies that undertake asset-backed lending in
property development and renewable energy generation.
T. 01684 571255
www.blackfinch.com
40
The Blackfinch approach:

Focused on capital preservation: Asset-backed investments in well
established sectors with predictable returns.
Targeting 4 - 7%: The investor has a greater participation in the return on
investment.
Transparency: A discretionary managed portfolio with clear valuation
methodologies for the underlying assets.
For more information please contact our intermediary team on 01684 571255
Open Offers
IHT
Stellar Asset Management Stellar Succession
Open
Stellar Succession utilises Business Property Relief to provide 100% exemption from
IHT after just two years while enabling clients to keep control and ownership
of capital.
Each client becomes a sole shareholder of their own bespoke private limited trading
company, which allocates capital to a diversified portfolio of asset backed, Business
Property Relief qualifying trading activities including Forestry, Farming, Bridging
Finance, Hotels and Renewable Energy.
The service has a focus on capital preservation our trades within Stellar Succession
are securitised, non-correlated to main stream asset classes, UK based and we do
not use gearing.Each of our trades has a target return of 5% pa (net), returns are
uncapped and clients have the flexibility to opt for growth or income.
The service is managed and fully administered by Stellar on the behalf of every client
within a competitive and transparent cost structure.
We offer a unique, but optional insurance policy across our range of IHT products
to protect investors from any future loss of value. The policy provides investors and
advisers with peace of mind and ensures beneficiaries always receive the original
amount invested.
Triple Point Navigator Service
Close
Evergreen
Evergreen
T. 020 3195 3500

www.stellar-am.com
IHT
Open
Close
Now
Targeting Capital Growth

Navigator is an investment management service that arranges investments into
companies providing targeted business funding.
Evergreen
Amount to be Raised: Unlimited*
Typically this funding is used by small and medium sized enterprises to acquire
assets which are critical to the continued success of their operations.
Navigator provides an ideal opportunity for investors seeking attractive riskadjusted returns and Business Property Relief by providing access to companies
participating directly in helping to bridge the funding gap.
Navigator aims to deliver to investors returns of 3 - 7% per annum, after all fees
and charges.
T. 020 7201 8990

*Minimum investment: 50,000
IHT
Triple Point Generations Service
Open
Targeting Capital Security

The Generations Service is an investment management service which provides
a strategy offering investors a high degree of capital security and liquidity, while
targeting returns which are comparable to asset classes such as cash deposits
and bonds.
Now
Close
Evergreen
Amount to be Raised: Unlimited*
To deliver this, it targets a broad spread of leases and infrastructure financing

arrangements principally with public sector organisations and good quality
companies.
These arrangements provide for specific receipts on specific dates over a period
of years, providing capital security, liquidity and the potential for steady returns.
They rely on a simple, transparent business model with controlled risk allowing
investors to access Business Property Relief.
The Generations Service targets Cash Plus returns.
*Minimum investment: 50,000
T. 020 7201 8990

41
SUSTAINABLE TECHNOLOGY INVESTORS

APPROVED EIS FUND 3
10 Million UK Sustainable Energy Fund
Your attention is drawn to the Important Notice at the end of this document and the risk warnings contained therein. Words and expressions
defined in the Information Memorandum shall have the same meaning as in this document
Compelling investment opportunity in the sustainable energy sector

STILs third EIS fund focused on UK sustainable energy assets
A management team with a 45% IRR track record
The Sustainable Technology Investors Approved EIS Fund 3 (the Fund) offers exposure to a portfolio of sustainable energy
companies operating within the anaerobic digestion (AD) and run-of-river hydro (Hydro) sub sectors, targeting superior risk
adjusted returns with an emphasis on downside mitigation, whilst taking advantage of EIS tax incentives.
The Fund Manager

Sustainable Technology Investors Ltd (STIL) is
based in London and authorised and regulated by the
Financial Conduct Authority.
STIL manages or advises on private equity
investments and committed funds of over 113
million in the sustainable energy, technology and
energy efficiency sectors.
STIL has a sector specialist management team with a
strong investment and development track record,
particularly in AD and Hydro.
STIL has a highly experienced Investment Team
with a verified track record of 45% IRR from 55
sustainable energy and technology investments
over 29 years.
Key Reasons to Invest

Targeted cash returns of 1.25 for a net 70p invested (79% uplift).
This would represent a 16% IRR over the 4 year period, equivalent to
a 30% IRR to an additional rate tax payer entitled to EIS income tax
relief.
Downside risk mitigation sought at 90% of the subscription price
with low cyclicality, predictable cash flows and asset backing whilst
maintaining the potential for good yields and capital gain on exit.
HMRC Approved EIS Fund When 90% invested in first 12 months
investors can claim income tax relief as if shares were subscribed for
in the tax year 2014/15.
A proven Fund Manager who has already fully invested STIL EIS
Fund 1 and invested more than 90% of STIL EIS Fund 2 within 8
months of fund close.
A management team with years of investment and development
experience across AD and Hydro, an enviable track record and
access to a strong pipeline of investment opportunities.
An exciting opportunity to access investment in the UK sustainable
energy sector. Key features include revenues supported by long-term
government policies and subsidies such as Feed-in Tariffs (FITs)
and the Renewable Heat Incentive (RHI), whilst targeting attractive
investment returns due to increasing energy demand and growing
resource scarcity.
Investment Team
Gordon Power Chairman, 30
years private equity investment and
fund management experience.
An overall track record of 29% IRR
from 239 investments and a 45%
IRR
from
29
sustainable
investments.
Jim Totty - Managing Partner, 21
years experience in sustainable
and clean technology, with 13 years
private
equity
investment
experience.
A 30% IRR from 20 sustainable
private equity investments.
Nick Pople - Managing Partner, 22
years sector experience across
sustainable
energy
and
technologies, with 17 years private
equity investment experience.
A 36% IRR from 23 sustainable
private equity investments.
Operating Partners
Firglas Ltd (Firglas) a specialist renewables
project developer and operator. Sourced and now
developing, in partnership with STIL, an AD plant
and two Hydro schemes in the UK.
Fredrik Adams Founder and
CEO of Firglas. Has worked with
STIL since 2009 when he formed
Adgen Energy Ltd, since acquired
by Tamar Energy, now one of the
largest AD operators in the UK.
Simon Cordery Operating
Partner who has worked closely
with STIL since 2010. Significant
renewable energy development
experience, particularly in AD.
Founder
of
Energy
and
Environment practice with Savills
in 2006.
EIS Tax Reliefs

Income tax relief at 30%
Tax-free capital gains when shares sold
Capital Gains Tax deferral
Business Property Relief
Loss relief against taxable income
Tax reliefs are dependent on investors individual
circumstances and are subject to change. The availability
of tax reliefs also depends on investee companies
maintaining their qualifying status.
STIL EIS Fund 3 - Investment Strategy

An existing platform of two businesses available for co-investment and
a strong pipeline of development assets.
Aim to provide Investors with a diversified portfolio of investments
which has a lower correlation to stock market movements.
Focus on AD and Hydro the sub-sectors where FITS and EIS relief
can still be combined, the core investment focus of STIL EIS Fund 1
and Fund 2, and the areas where the Fund Manager has in-depth
experience, an extensive track record and a pipeline of investment
opportunities.
Downside risk mitigated by targeting asset backed companies with
contracted third party revenues, proven technologies with warranties and
UK government guaranteed FITs and possibly RHI revenues.
Sustainable Technology Investors Approved EIS Fund 3

Fund Terms
Fund Size
10 million
Fund Type
HMRC Approved complying EIS Fund
Investment Focus
Anaerobic digestion (AD) and run-of-river

hydro (Hydro)
Closing Date
02 April 2015
Target Return
1.25 on a net 70p invested
Exit Strategy
Liquidity targeted at 4 years
Initial Charges
2% (plus up to 3% adviser fee if

applicable)
Annual Charges
2% AMC (plus 0.5% admin charge)
Performance Incentive Fee Zero until return hurdle of 1.16 (in

respect of every 1 invested) is reached
4p catch up between 1.16 and 1.20
Example Investee Company

STIL EIS Fund 1 and Fund 2 invested in Black Dog
Biogas Ltd, a developer, owner, operator of AD
plants in the UK. Its first project is a 499kW AD plant
on the Isle of Wight. There is the potential to expand
the plant up to 1MW in 2015 with further investment.
20% on returns between 1.20 and 1.25

30% on returns above 1.25
For further information please contact LGBR Capital:

Tel:
Email:
Web:
020 3195 7100

sales@lgbrcapital.com
www.lgbrcapital.com
Black Dogs Isle of Wight AD Plant under construction
Important Notice
This document has been issued and approved as a financial promotion for the purpose of Section 21 of the Financial Services and Markets Act 2000 (FSMA) by
Sustainable Technology Investors Limited (STIL), which is authorised and regulated by the Financial Conduct Authority (FCA), under reference number 221604 and
whose registered office is at 31A St Jamess Square, London SW1Y 4JR. STIL has taken all reasonable care to ensure that this document is fair, clear and not
misleading but the statements of opinion or belief contained in this document regarding future events constitute STILs own assessment and interpretation of information
available to it at the date of issue of this document and no representation is made that such statements are correct or that the objectives of the Fund will be achieved. No
reliance is to be placed on the information contained in this document. It is important that prospective investors read and understand fully the Information
Memorandum relating to the Fund, dated November 2014, and the risks involved with the arrangements described in this document (which is only a summary
of some of the information in the Information Memorandum). The opportunity described in this document is NOT suitable for all investors. Key risks are
explained in the Information Memorandum and should be carefully considered. Investment in EIS qualifying companies are considered to be high-risk, including
illiquidity, lack of dividends, loss of investment and dilution. You should be aware that shares and income from them may go down as well as up and you may not get
back the amount originally invested. Past performance is not a reliable indicator of future performance and may not be repeated. An investment in smaller and unquoted
companies carries a higher risk than many other forms of investment. The Funds investments are likely to be illiquid and difficult to realise. Prospective investors should
regard an investment in the Fund as a long term investment; realisation of the original investment will be piecemeal and, in practice, may extend beyond 4 years.
Accordingly your capital is at risk and you may lose all the money you invest. Tax reliefs are dependent upon an investors individual circumstances and are subject to
change. Prospective investors should seek their own independent advice and then rely on their own independent assessment of the Fund; nothing in this document
constitutes tax, financial, legal or investment advice. STIL is unable to provide financial, investment or tax advice. This document does not constitute, and may not be
used for the purposes of, an offer to or invitation to treat by any person in any jurisdiction outside the United Kingdom. This document and the information contained in it
are not for publication or distribution to persons outside the United Kingdom.
Octopus: putting VCTs

in your clients reach
What makes a great Venture Capital Trust (VCT) investment? Compelling tax advantages for investors? Definitely.
But at Octopus we think the real strength of VCTs lies in the underlying investments themselves. Weve got a track
record of spotting growth potential in smaller UK companies such as Zoopla, graze.com and Secret Escapes. Backing
businesses like these is great for them and could be great for our investors too. No wonder investors trust us with
more VCT money than any other provider*. We currently have a diverse range of VCTs open to new investment,
so call 0800 316 2067 or visit octopusinvestments.com to find out more.
For professional advisers only and not to be relied upon by retail clients.
*Source: Association of Investment Companies, October 2014. This advertisement is issued by Octopus Investments Ltd which is authorised and
regulated by the Financial Conduct Authority. This advertisement is not a prospectus and investors should only subscribe for VCT shares on the basis
of information in the VCT prospectus which can be obtained from octopusinvestments.com. Investors capital is at risk and they may not get back the
full amount invested. Tax treatment depends on the individual circumstances of each investor and may be subject to change. Past performance is not
a reliable indicator of future results and any forecast is not a reliable indicator of future performance. The availability of tax relief also depends on the
investee companies maintaining their qualifying status. VCT shares are likely to have higher volatility and liquidity risk than other types of shares quoted
on the London Stock Exchange Official List. This promotion does not offer investment or tax advice and this product is not suitable for everyone.
JN0215

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Supported by

The IFA Gu i d e t o Ta x Eff i ci e n t I n ve s t i n g

AND IHT EFFICIENCY

ENERGY AFTER APRIL

It seems theres some kind of an election coming. Michael

Adviser Checklist for April

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IFA Magazine Publications Limited,

Our monthly round-up of news stories. Keep sending us your

Ingenious Media presents a last-minute guide to end-of-year

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7. The SEIS Revolution

10. Technology Perspectives

A look at two current projects from the McKinnons stable

EIS Magazine is for professional advisors only.

12. Venture Capital Trusts

16. IHT Strategies

Dermot Campbell, MD at Kuber Ventures, explains how EIS

Tax Efficient Investing for HNW Clients

20. Business Property Relief

24. The Future of Alternative Energy Investment

26. Open Offers

Our monthly listing of whats currently available for subscription.

www.eismagazine.com March/April 2015

Trusts, a new type of vehicle which is still very much on the

that were less than 12 years old

Meanwhile the government has

Marketing SITR funds

Meanwhile the rules on the

Social Venture Capital Trusts

Other changes are less difficult to

The Chancellor also laid out the

www.eismagazine.com March/April 2015

A Year End Checklist

Where an estate is liable to inheritance tax (IHT), the

EIS Magazine March/April 2015

Clients who have capital gains in excess of their annual

For individuals that already know an income tax liability

The seed enterprise investment

SEIS, the UK government has created

investments, regardless of the income

www.eis.magazine.com March/April 2015

In the first year around

If an investor has paid CGT on other

How Loss Relief Works

EIS Magazine March/April 2015

previous year up to a maximum

Now, companies will be allowed

Companies use a hybrid [of SEIS and

the crowdfunding market, of course.

www.eismagazine.com March/April 2015

The Multi-Manager EIS Platform

+44 (0)20 7952 6685

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Finely crafted investments

Amati VCTs Top Up Offers 2014/2015

Amati has one of the most

Last Call for Alternative

Barts Health Open Offering

www.eis.magazine.com March/April 2015

Venture Capital Trusts

Venture Capital Trusts (VCTs) have been celebrating