PCEB Webinar – Tax Efficient Investing Part 1 - Benefits of VCT’s and EIS’s

Tax Efficient Investing Part 1 - Benefits of VCT’s and EIS’s

Our popular private client & entrepreneurial business webinars are back! Each month, we focus on a key topic for our private and entrepreneurial clients, concluding with an open tax clinic.

In this session, we looked at the different types of tax efficient investment schemes and incentives that may be suitable for you.

Watch the webinar in full below

Click here to watch Tax Efficient Investing Part 2 - Benefits of Business Relief & Pensions webinar

Tax mitigation is a way of ensuring that your tax affairs are properly structured so that you don’t pay any more tax than you should. In the UK there are several methods which allow you to legitimately do this, including financial schemes such as Venture Capital Trusts (VCT’s) and Enterprise Investment Schemes (EIS’s).

VCT’s and EIS’s have been used for many years, and they are as tax efficient now as they have always been. Both schemes offer good tax advantages such as a reduction in income tax liability, potential tax-free growth in value, and the opportunity to hold over other capital gains.

Considering the tax benefits involved, it is worthwhile understanding the risks and ensuring you have the financial flexibility to invest in the types of companies these schemes are aimed at.

Our Private Client team is joined by Scott Newbould from MHA Caves Wealth for this webinar, to explain more about these schemes and with real-life case studies to demonstrate the benefits and risks, to help you decide if these schemes are a suitable investment route for you.

Key points in this webinar:

• What is tax efficient investing
• What are Venture Capital Trusts
• What are Enterprise Investment Schemes
• What are the benefits and risks to these schemes
• Who should invest
• Q&A

Speakers

• Patrick King – Tax Partner, MHA
• James Kipping – Tax Partner, MHA
• Scott Newbould – Financial Adviser, MHA Caves Wealth

Click here to download a copy of the webinar slides

Risk Warnings / Important information you should read:

MHA Caves Wealth is authorised and regulated by the Financial Conduct Authority (FCA), Financial Services Register number 143715 and is a legally independent financial service and wealth management business who alone takes full responsibility for the advice they provide. Information and comment provided by MHA Caves Wealth on this website is generic in nature and should not be construed as personal financial advice

This communication is for general information only and is not intended to be individual investment advice, recommendation, tax or legal advice. The views expressed in this article are those of MHA Caves Wealth or its staff and should not be considered as advice or a recommendation to buy, sell or hold a particular investment or product. In particular, the information provided will not address your personal circumstances, objectives, and attitude towards risk.  Therefore, you are recommended to seek professional regulated advice before taking any action.

 Key Risks: Capital at risk. Past performance is not a guide to future performance. The value of an investment and the income generated from it can go down as well as up, and is not guaranteed, therefore you may not get back the amount originally invested.

 Investment markets and conditions can change rapidly. Investments should always be considered long term.

VCT’s:

Venture Capital Trusts (VCTs) are high risk investments and there may be no market for the shares should you wish to dispose of them. You may lose your capital. The tax treatment depends on the individual circumstances of each client and may be subject to change in future.

EIS:

Enterprise Investment Schemes (EISs) and Seed Enterprise Investment Schemes (SEIS) are very high-risk investments. An EIS/SEIS investment is usually concentrated in one single unquoted trading company. Often there is no market for the shares, and it may therefore be very difficult to make a disposal. There is a strong possibility of the chosen company failing and you may lose your capital. The tax treatment depends on the individual circumstances of each client and may be subject to change in future.