Downing Pub EIS - Tranche 3
Deadlines for applications to Downing Pub EIS 3
- Application forms and bank transfers: by 3pm on Thursday 1 March 2018.
- For applications by cheque: by 3pm on Friday 23 February 2018.
This EIS will invest in the growth of two UK pub companies while offering access to attractive EIS tax reliefs. Please read the key risks below.
The Downing Pub EIS - Tranche 3 will invest in two newly established UK pub companies while offering access to attractive EIS tax reliefs, including 30% income tax relief in the 2017/18 and 2016/17 tax years (via carryback). Both companies have received advanced assurance from HMRC that the shares being issued to investors should qualify for EIS relief.
Maverick Pubs Ltd
The company is seeking to build an estate of high-quality freehold pubs in London and the South East and has exchanged contracts to purchase its first site in West London. Maverick Pubs is headed by sector veteran David Bruce, who leverages a 50-year entrepreneurial career in both brewing and building pub groups.
Grosvenor Pubs Ltd
Grosvenor Pubs is seeking to build an estate of premium gastropubs in well-connected commuter belt towns and villages. The management team is led by a highly-experienced restaurateur and pub operator and a financial director with over 20 years' investment and advisory experience.
Attractive tax reliefs to benefit from
The service offers tax reliefs that could benefit those looking to save income tax, shelter assets from inheritance tax or defer a capital gain (subject to personal circumstances).
Listed below are the main tax reliefs available under the service:
- Income tax relief of 30%: You’ll receive 30% income tax relief on your subscription, up to a maximum £1,000,000 investment in this tax year (subject to your income tax liability and personal circumstances). You can also carry back to the previous tax year, again limited to £1,000,000. Please remember, you’ll need to hold the shares for at least three years from the date of issue or start of trading (whichever is later). If you sell them within this time, you will need to repay this tax relief.
- Inheritance tax (IHT) relief: If you have held the investments for at least two years at the date of death, they should qualify for IHT relief, provided the EIS companies continue to undertake an EIS trade.
- CGT deferral relief: You have 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 the underlying companies.
- Tax-free capital gains: Any gains you make when selling your shares (after the minimum three-year holding period) will be free from capital gains tax.
- Loss relief: In the event you make a loss on the sale of any EIS investment in the portfolio, irrespective of the overall performance of the portfolio, you can offset this (net of any income tax relief you’ve received) against income at your marginal tax rate, or capital gains.
Please remember, this is a brief summary of the latest tax reliefs available, based on current legislation and HMRC practice, which are subject to change in the future and your personal circumstances. We always recommend you seek appropriate professional advice before making an investment.
|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: DPEIS, or by electronic bank transfer using the payment details below.
How to apply
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.
Please click here to download a print-friendly version of the Downing Pub EIS - Tranche 3 Application Form.
The key risks associated with our Pub EIS are listed below – please refer to the Terms & Conditions document for a full list of risks.
- 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: the rates of tax, tax benefits and allowances that are described in this Brochure are based on current legislation and HMRC practice - these may change from time to time and as such, they are not guaranteed and are subject to personal circumstances.
- 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, it is 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.
- Limited spread of risk: the EIS will only invest in two pub companies, providing little diversification across company or sector, and investors are advised not to put too much of their capital into the service.
- Investments are long-term and high risk: while we will seek to provide a liquidity event within three to five years, you should not consider investing if you think you could require access to your funds before then. Please remember, investments made through our EIS will be in smaller, unquoted companies that are higher risk than those listed on the London Stock Exchange.
- Pubs are subject to trading risks: the EIS Companies will be subject to the trading risks associated with the operation of licensed premises and the performance of the pubs may be affected by factors outside of our control and that of the management teams.
- You cannot rely on past performance: please remember that past performance is not a reliable guide to future performance and there is no guarantee that the Service’s objectives will be achieved.