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.
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
- 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.
|Minimum subscription: £15,000||Maximum 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.
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.
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.