Quantcast Downing EIS - Tranche 2 | Downing

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 I make this statement so that I can receive promotional communications relating to non-readily realisable securities as an adviser who specialises in advising on investments. I confirm that I am sufficiently qualified to provide clients with advice about the suitability of Downing’s investments.

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(a) I am already a client of a regulated firm, such as an Independent Financial Adviser or Wealth manager; (“my financial adviser”); and

(b) My financial adviser will advise my about whether any investment are suitable where I viewed the investment details through Downing’s website.

I accept that the investments to which the promotions will relate may expose me to a significant risk of losing all of the money or other property invested.

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1) I have a total annual income or £100,000 or more during the last 12 months;

2) I have net assets of £250,000 or more (not including my primary residence, or assets due under an insurance contract, or pension or termination benefits).

I make this statement so that I can receive promotional communications which are exempt from the restriction on promotion of non-readily realisable securities. The exemption relates to certified high net worth investors and I declare that I qualify as such because at least one of the following applies to me:

(a) I had, throughout the financial year immediately preceding the date below, an annual income to the value of £100,000 or more;

(b) I held, throughout the financial year immediately preceding the date below, net assets to the value of £250,000 or more.

Net assets for these purposes do not include:

(i) the property which is my primary residence or any loan secured on that property;

(ii) any rights of mine under a qualifying contract of insurance; or

(iii) any benefits (in the form of pensions or otherwise) which are payable on the termination of my service or on my death or retirement and to which I am (or my dependants are), or may be, entitled.

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1) I have been a director of a company with an annual turnover of £1 million or more in the last 12 months;  

2) I have made more than one investment in an unlisted company in the last year

3) I have been a member of a group of business angels for at least 6 months

  4) I have worked in the finance industry in an active professional capacity, financing small and medium firms in the last 24 months.

I declare that I am a self-certified sophisticated investor for the purposes of the non-readily realisable securities. I understand this means:

(a) I can receive promotional communications made by a person who is authorised by the Financial Conduct Authority which relate to investment activity in non-readily realisable securities;

(b) the investments to which the promotions will relate may expose me to a significant risk of losing all of the property invested I am a self-certified sophisticated investor because at least one of the following applies:

(i) I am a member of a network or syndicate of business angels and have been so for at least the last six months prior to the date below;

(ii) I have made more than one investment in an unlisted company in the two years prior to the date below;

(iii) I am working, or have worked in the two years prior to the date below, in a professional capacity in the private equity sector, or in the provision of finance for small and medium enterprises;

(iv) I am currently, or have been in the two years prior to the date below, a director of a company with an annual turnover of at least £1 million.

I accept that the investments to which the promotions will relate may expose me to a significant risk of losing all of the money or other property invested. I am aware that it is open to me to seek advice from someone who specialises in advising on investments.

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I agree to invest no more than 10% of my savings (including shares, bonds, ISAs and property, excluding my primary residence) into investments that cannot be easily sold.

  I make this statement so that I can receive promotional communications relating to non-readily realisable securities as a restricted investor. I declare that I qualify as a restricted investor because:

(a) in the 12 months preceding the date below, I have not invested more than 10% of my net assets in non-readily realisable securities; and

(b) I undertake that in the 12 months following the date below, I will not invest more than 10% of my net assets in non-readily realisable securities.

Net assets for these purposes do not include:

(a) the property which is my primary residence or any money raised through a loan secured on that property;

  (b) any rights of mine under a qualifying contract of insurance; or

  (c) any benefits (in the form of pensions or otherwise) which are payable on the termination of my service or on my death or retirement and to which I am (or my dependants are), or may be entitled.

I accept that the investments to which the promotions will relate may expose me to a significant risk of losing all of the money or other property invested. I am aware that it is open to me to seek advice from an authorised person who specialises in advising on non-readily realisable securities.

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Downing EIS - Tranche 2

The Downing EIS provides an opportunity for those seeking a capital preservation investment strategy benefitting from attractive EIS tax reliefs, including 30% income tax relief. Please read the key risks below.

Introduction

We will focus on businesses seeking to trade from freehold or long-leasehold premises. By focusing on these types of opportunities, we are seeking good growth potential as well as helping to reduce risk. In the event of the failure of a business, the base value of any land and buildings should be recoverable (although not necessarily in full). We may also invest in businesses that have predictable revenue streams.

The Downing EIS will aim to create a portfolio of companies by investing in businesses operating in a variety of sectors across the UK. By investing in a number of companies, unlike a single company EIS offer, diversification should be increased and the effect of any underperformance or failure by any individual company within the portfolio should be reduced.

We expect the Downing EIS to invest in approximately 4-6 companies across a range of sectors. Each will be made alongside a management team that we have chosen for their ability and expertise.

 

Using our experience to target attractive investment sectors

Our investment team is over 35-strong. They draw on their 300+ combined years of experience to seek out attractive opportunities, from sectors which may include:

  • Schools and nurseries
  • Data centres
  • Wedding venues
  • Pubs
  • Leisure centres

We have specialised in investing in businesses that are supported by assets for over 15 years and currently have approximately £200 million of funds under management in this arena.

Key tax reliefs

  • Income tax relief: 30% income tax relief on the amount subscribed through the Service is available on an aggregate maximum investment of £1 million per Investor per tax year, provided the investments in the underlying investments are held for three years. In addition, tax relief on subscriptions may be carried back to the previous tax year, subject to that year's annual limit, which will also attract income tax relief at 30%.
  • Tax-free capital gains: Tax-free capital gains on EIS investments held through the Service and disposed of after the Three Year Period.
  • Loss relief: If you make a loss on the sale of any EIS investment in the portfolio, irrespective of the overall performance of the portfoliom you can offset this (net of any income tax relief you've received) against income at your marginal tax rate, or capital gains.
  • Inheritance tax relief: The value of investments held through the Service for two years or more at the date of death should qualify for IHT relief provided the EIS Companies continue to undertake an EIS Trade. Under current legislation, proceeds received on exit from a company undertaking an EIS Trade can be re-invested into new EIS Companies to maintain the IHT-free status.
  • CGT deferral relief: The opportunity to defer unlimited capital gains realised up to three years before, or up to one year after, the date of the investment into EIS Companies.

CGT deferral relief and inheritance tax relief are not limited, other than by personal circumstances.

Subscription amount

Minimum subscription: £15,000Maximum subscription: no maximum

Method of payment for application

Payments for applications can be made by cheque, made payable to:

Thompson Taraz Downing re: EIS, or by electronic bank transfer using the payment details below.

Sort Code:
16-01-09

How to apply

If you would like to invest, please first read the Brochure and Terms & Conditions before completing an application form. Please note that we can only accept applications that are submitted through an FCA authorised intermediary.

 

Key risks

Investors' capital is at risk. Set out below are the key risks involved with an investment through the Service. Please see the Terms & Conditions for a full list of the risk factors.

  • Capital is at risk: The value of investments and the income derived from them may go down as well as up and you may not get back the full amount invested.
  • Tax reliefs are not guaranteed: rates of tax, tax benefits and allowances described above are based on current legislation and HMRC practice. These may change and are not guaranteed.
  • Investments are long term and higher risk: you should not consider investing if you might require access to your funds within four years. Investments made through the Service will be in unquoted companies and are considered to be higher risk than securities listed on the London Stock Exchange.
  • Qualifying investments are not guaranteed: there is no guarantee that sufficient investments in EIS Companies will be made within the expected timetable, or at all. In addition, despite seeking advance assurance from HMRC that each EIS Company’s activities should qualify under the EIS, there is no guarantee that full approval will be granted or that EIS tax reliefs will be available. It is also possible that the EIS Companies may subsequently cease to qualify for EIS tax reliefs, in which case, the tax reliefs you receive could be delayed or lost.
  • You cannot rely on past performance: past performance is not a guide to future performance and there is no guarantee that the Service’s objectives will be achieved.
  • The performance of the EIS is dependent on the Manager’s ability to identify suitable EIS Companies undertaking appropriate EIS trades: In addition, the investment timetable may not be achieved, which would delay the availability of EIS tax reliefs or, in some cases, result in the loss of EIS tax reliefs. In some circumstances a delay could cause certain investors to lose the opportunity to defer gains which occurred more than three years before the investments are made.
  • Diversification may not be achieved and investments may be in the same sector.

Important Notice

Investing in our products will place your capital at risk and you may not get back the full amount invested. Any tax treatment may be subject to change and the availability and value of the reliefs depend on the individual circumstances of each investor. The availability of tax reliefs also depends on the investee companies maintaining their qualifying status.

Further information can be found at HMRC’s website. Neither past performance or forecasts are reliable indicators of future results and should not be relied upon. Unquoted or smaller company shares are likely to have higher price fluctuations and are likely to be more difficult to sell than shares quoted on the London Stock Exchange Official List. Website content is not intended to constitute investment, tax or legal advice. We recommend you seek independent advice before investing in any of our products.

Important Notice

Downing’s investments place your capital at risk and you may not get back the full amount invested. Past performance and forecasts are not a reliable guide to future results. Tax treatment may be subject to change and depends on individual circumstances. Smaller company shares are likely to have higher volatility and liquidity risks than other types of main market listed instruments. We recommend that you seek professional independent financial advice before investing. We do not offer investment or tax advice.

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