pfp wealth enterprise investment schemes 2014 15

A Guide to Enterprise Investment Schemes 2014-15

PFP Wealth Planning PFP Wealth Planning 3 Windsor Court Lion House Clarence Drive Red Lion Street Harrogate London HG1 2PE WC1R 4NA Telephone: 01423 523311 Telephone: 0207 400 1860

PFP Wealth Planning LLP is authorised and regulated by the Financial Conduct Authority

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Government can't create wealth, but it can create

the conditions for private enterprise to flourish. Bill Owens

This guide is intended to provide an

overview of some of the tax planning

opportunities currently available.

Enterprise Investment Schemes have

developed into mainstream tax and

investment planning strategies that

can form a useful part of an

individuals portfolio. They will appeal

to many clients depending on their

attitude to investment risk and

appetite for reducing their tax bill.

Should any of these schemes be of

interest we can provide further

detail. Please contact us to explore

the full options in more detail and

without obligation.

At PFP we have a strong pedigree of

providing comprehensive solutions

for prosperous individuals, saving

clients millions of pounds of tax in the

process. We are committed to

sourcing innovative strategies for the

management of our clients wealth

and tax obligations covering the

following:

Income Tax

Capital Gains Tax

Business Tax and Remuneration

Planning

National Insurance Planning

Trust and Inheritance Tax

Our expert knowledge and

independence ensures access to

cutting edge solutions, many of which

are only available to a handful of

firms, and our technical, regulatory

and support teams ensure that we

are always on hand to deliver a

premier service, something we are

proud to have provided consistently

for many years and to generations of

clients.

The information in this guide is generic and does not constitute investment advice. These schemes may not be suitable for your particular

circumstances. Independent specialist advice should be sought if considering any of these schemes. Before making any investment, you should

read and understand the particular terms and conditions of that scheme and be aware of the risks associated with that investment.

The nature of any planning we recommend will depend on the schemes available at the time of planning and the circumstances of the individual.

This will also be affected by Government and Her Majestys Revenue and Customs (HMRC) policy, both at the time of planning and in the future,

as changes in legislation may result in some of the options mentioned here becoming unavailable.

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Contents Contents ............................................................................................................................................................. 3

What is an Enterprise Investment Scheme (EIS)? .............................................................................................. 4

How do they work? ............................................................................................................................................ 6

What are the investment risks? ......................................................................................................................... 7

What are the tax advantages?............................................................................................................................ 9

What are the tax risks? ..................................................................................................................................... 10

What are the different types of EIS? ................................................................................................................ 11

Seed Enterprise Investment Scheme (SEIS) ...................................................................................................... 12

Leapfrogging Losses ......................................................................................................................................... 13

What are the benefits? .................................................................................................................................... 14

How long must I invest for? .............................................................................................................................. 14

How much can I invest? ................................................................................................................................... 15

Some currently available schemes ................................................................................................................... 15

CHILLINGHAM CLASSICS EIS ......................................................................................................................... 16

THE CITY PUB EIS FUND ................................................................................................................................ 16

DOWNING RENEWABLES EIS.(CLOSED FULLY SUBSCRIBED) ............................................................... 17

EARTHWORM RENEWABLE ENERGY SECURED LOANS EIS .......................................................................... 17

GUINNESS EIS 6 ............................................................................................................................................ 18

IMBIBA LEISURE EIS FUND ............................................................................................................................ 18

INGENIOUS PATH FILM PLUS EIS ................................................................................................................ 19

INS ROSEHILL ENTERPRISES EIS .................................................................................................................... 19

OXFORD CAPITAL INFRASTRUCTURE ........................................................................................................... 20

SELECT MEDIA PRODUCTION SEIS.(CLOSED FULLY SUBSCRIBED) ....................................................... 20

SENECA EIS PORTFOLIO SERVICE .................................................................................................................. 21

SELECT TELEVISION PRODUCTION EIS .......................................................................................................... 21

SYMVAN TECHNOLOGY SEIS FUND 2 ........................................................................................................... 22

Glossary ............................................................................................................................................................ 23

Important Notes ............................................................................................................................................... 23

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What is an Enterprise Investment Scheme (EIS)? The EIS is arguably the single most tax advantageous investment for UK investors

with relief potentially available from capital gains tax, income tax, and

inheritance tax.

It was introduced in 1994 to provide assistance to small, higher risk, unquoted

trading companies to raise capital by offering tax incentives to investors.

According to HMRC, 9.7 billion has been invested through EIS up to 2012-131.

The EIS provides a series of tax breaks to individuals who subscribe for shares in

qualifying companies at launch and hold them for 3 years.

Income tax relief of 30% - up to a maximum of 300,000 reclaimed tax in any

year.

100% inheritance tax relief after 2 years.

100% Capital Gains tax deferral for gains of up to three years ago for the life of

the investment.

Tax free growth.

Loss relief.

EIS and SEIS is potentially suitable for a wide range of individuals who wish to

take advantage of the growth potential of smaller companies and are

comfortable with the risks that they involve:

Obtain income tax relief.

Defer payment of capital gains tax.

Benefit from tax free capital growth.

Shelter investments from inheritance tax.

Diversify their existing investment portfolio.

1 source: www.HMRC.gov.uk/stats/ent_invest_scheme

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Where individuals have made taxable gains on other assets in the past 3 years,

combined income tax relief and capital gains tax deferral may reduce the

effective net contribution to an EIS to just 42p in the pound (for a higher rate

tax payer).

In effect, instead of paying tax on a capital gain, the taxpayer receives an interest

free loan from the Government, which is repaid when the EIS shares are sold

(unless rolled over into another deferral scheme). Using this mechanism, it has

been possible for investors to defer the tax on gains realised in the mid 1990s,

and to avoid doing so as long as deferral relief remains.

In effect, instead of paying tax on a capital gain,

the taxpayer receives an interest free loan from

the Government, which is repaid when the EIS

shares are sold.

In practice, investors pay the gross

contribution of 100p in the pound and

reclaim income and capital gains tax.

This may be achieved very quickly if the tax

has already been paid, using the carry back

facility for example.

*Assuming gains taxed at 28%.

30p income tax relief

28p deferred Capital Gain*

42p Contribution

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How do they work?

Investments are made directly into

unquoted companies, which satisfy

predetermined criteria on size and

the type of trade undertaken. It is

possible for investors to subscribe to

several qualifying companies in any

year, subject to individual scheme

minima. Qualifying shares must then

be held for a minimum of 3 years.

The company must have gross

assets that do not exceed

15million before investment or

16 million after investment

Any investment of EIS (or VCT)

funds does not exceed more than

5 million in any one company in

any one year.

The company must not be

controlled by another company.

The company must have fewer

than 250 employees.

Arranged exit schemes are not

allowed, however, many schemes will

declare that they will seek a means

for shareholders to realise their

investment at a future point after the

qualifying period has expired. This is

usually through liquidation, flotation

or a trade sale.

Popular schemes have historically

included public house and childrens

nursery schemes where a large

proportion of the assets of the

underlying trade are in tangible

bricks and mortar.

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What are the investment risks?

An EIS can invest in a single company which is often unquoted. Such companies

may be well established or may be start-up businesses. By their nature, they will

be relatively high risk.

An EIS investment may go down in value as well as up. You may not get

back the original amount invested.

Most EIS schemes are not quoted on any stock market although some

may be on AIM. These unquoted investments carry a higher risk than

those quoted and it may be difficult to obtain reliable information

about their value.

The failure rate of EIS companies is typically much higher than that of

larger companies and there is a risk you may lose the entire value of

your investment (although losses are allowable for tax purposes).

EIS are usually investments in individual unquoted companies.

Shareholders are normally locked into the investment with no means

to dispose of the shares until an exit is achieved (e.g. quoted market

flotation, trade sale or share buy-back).

Shareholders must retain their investments for three years to benefit

from the tax reliefs.

Each EIS will face additional trading risks specific to the nature of the

qualifying trade.

However, there are a number of factors in place that seek to counterbalance the

risk level

For portfolios of EIS companies, the investment management team is often

very experienced in investing in their sector.

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EIS entrepreneurs and investment management teams often have experience

in managing similar ventures and some comfort can be derived from their

involvement.

A number of EIS investment companies have assets which may protect the

investors increasing the likelihood of a return if the company was to fail. A

typical example is public house schemes where a significant proportion of the

investment may be in freehold property.

Although some schemes may be viewed as less risky than others, investors

should remember that these are higher risk investments. They do however merit

serious consideration, particularly when tax relief is taken into account.

EIS may be attractive to investors who face capital gains tax liabilities (or indeed

those who have recently paid capital gains tax where a rebate may be possible)

and who are willing to take a speculative view of an entrepreneurial venture. It

should be noted that unquoted companies can be both difficult to value and to

sell, and investors must take a long-term view.

Impartial advice is essential in selecting an appropriate EIS. We undertake a great

deal of analysis in this area and supplement our own in-house expertise with

external research information.

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What are the tax advantages?

For investors who subscribe for shares in qualifying companies at launch and

hold them for the full 3 year qualifying period, the advantages are:

Income tax relief of 30% on a maximum subscription of 1 million (provided

that an individual does not acquire an interest of more than 30% of the

company). Individuals may elect to treat their subscription for EIS shares, up

to their maximum annual allowance, as if made in the previous tax year.

Gains are exempt from capital gains tax if held for a period of 3 years or more.

Losses on EIS shares can be set against other income or gains.

Unlimited capital gains tax deferral as long as shares are bought 1 year before

or no more than 3 years after the date of a taxable gain.

Unlimited exemption from inheritance tax via Business Property Relief once

shares have been held for 2 years.

To qualify, investors must be aged 18 years or over and unconnected with the

underlying company.

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What are the tax risks?

Risks are based upon our understanding of tax legislation and practice as at the

date of this document:

The tax treatment depends upon individual circumstances and may be subject

to change in the future.

A failure to meet or maintain the EIS qualifying requirements could result in

the company not obtaining or losing the tax reliefs even if previously obtained.

The timing of tax relief may depend upon the date of the investment into the

underlying qualifying asset which in some cases may be out of the investors

control and occur sometime after the date of investment.

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What are the different types of EIS?

Single Company EIS

These schemes are structured around unquoted private companies, with a view

to developing the business to realise a profit when the company is sold in the

future or floated on an investment market. Whilst there are some restrictions,

EIS opportunities have come about in almost every sector from the manufacture

of body armour to Olivier award winning West End musicals.

There is often no opportunity to sell single company shares, unless the company

is sold or can buy back its shares.

EIS Discretionary Portfolios

Portfolios are professionally managed discretionary services that invest in the

shares of a number of qualifying schemes. It is important to note that the

investor receives tax relief at the point of investment by the fund manager in

individual qualifying shares, which may be spread over a considerable period.

This is especially relevant where a capital gain is being deferred, as the

investments must be made within 3 years of the date that the gain is crystallised.

Approved EIS Funds (not to be confused with mutual funds or collective investments)

Aimed at investors wishing to build up an EIS portfolio but not wishing to pick

individual schemes themselves, funds invest in shares qualifying for EIS reliefs.

The structure of these funds is validated in advance by HMRC and tax relief is

provided at the point at which the fund closes at which time the fund has twelve

months in which to invest 90% of the sums raised in qualifying companies.

Capital Gains Tax Deferral is not available until the manager has made the

underlying investments. Although upfront tax relief is appealing, many

managers find the investment window restrictive and prefer to invest client

money on a portfolio basis where, arguably, it is possible to wait for

opportunities that are more attractive.

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Seed Enterprise Investment Scheme (SEIS)

Seed EIS schemes were introduced on 6 April 2012. The investment limits are

smaller than traditional EIS schemes and the tax treatment more generous.

Where the qualifying conditions are met, a subscription for shares by individuals

in an SEIS company which begins a new trade will attract:

Income tax relief of 50% for subscriptions for shares of up to 100,000,

irrespective of the investors marginal tax rate.

Exemption from capital gains tax on the disposal of such shares.

50% CGT reinvestment relief will apply to gains accruing in the 2014-15

tax year providing gains are reinvested in qualifying SEIS investments.

Investors can opt to treat an investment as having been made in the

previous tax year, in whole or in part, such that tax reliefs are available

against income or capital gains tax paid or payable for that year.

Companies that qualify can raise up to a total of 150,000 under SEIS. The

company must not previously have raised any funds from EIS or VCT investors.

The rules that govern SEIS companies are similar to those for the EIS but with

lower limits. Qualifying companies and any subsidiaries must have gross assets of

not more than 200,000 and fewer than 25 full-time equivalent employees

immediately before investment.

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Leapfrogging Losses

It may be possible to use EIS tax relief to benefit an individual who has made or is

sitting on a loss and would like to offset it against a previous gain. This is not

possible under current legislation as losses are only available to offset against

gains made in the future.

In these circumstances, an Enterprise Investment Scheme can provide a potential

solution.

1. If made within 3 years, the previous gain can be deferred by investing the

amount of the gain into an EIS. This will allow the tax to be deferred or

generate a refund from HMRC if it has already been paid. The investor will

also benefit from 30% income tax relief on their investment.

2. If not already made, the loss can then be realised.

3. The deferred gain is re-crystallised on the disposal of the EIS. As this is now

after the loss has been made, the gain has effectively leapfrogged the loss

which may be available to offset against the gain.

LOSS GAIN

Individual defers the gain for

three years and receives 30%

income tax relief on their EIS

Investment

GAIN LOSS

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What are the benefits?

Capital Growth

EIS investors help small companies to contribute to economic growth. These are

typically small, entrepreneurial businesses with huge potential for growth if they

are successful.

Diversification

Although generally riskier, smaller companies can have different growth

dynamics than larger listed businesses and can add valuable diversification to an

investment portfolio. Care is required to ensure that the risks are commensurate

with your attitudes and circumstances.

Security

The EIS industry itself is an entrepreneurial one and in the past 10 years, a

number of investment management companies have sought to find qualifying

companies with predictable revenue streams and/or that are backed by readily

accessible assets. An example of this is schemes that invest in renewable energy

which benefit from long term government backed subsidies.

How long must I invest for?

You can sell your holding at any time however, if you do sell within 3 years of

issue, the income tax rebate will be clawed back by HMRC and any capital gains

deferred will crystallise. Most schemes will seek an eventual exit by, say, flotation

or trade sale and any investment should be viewed as a medium to long-term

holding.

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How much can I invest?

The maximum investment for income tax relief in any tax year is 1 million. For

CGT deferral, it is unlimited. This sum can be spread across a number of EIS

investments to gain valuable diversification. The minimum investment will

depend upon the particular scheme but may start from as little as 5,000.

Many companies now offer EIS portfolio services where an individual will invest a

single lump sum with a manager who will, in turn, invest it into a range of EIS

qualifying opportunities. Although the investor will benefit from diversification, it

should be noted that tax relief will be obtained at the time of each underlying

investment and care should be taken with relation to the timing of investments

where capital gains are being deferred and investment must be made within 3

years of the date of the gain.

Some currently available schemes

The following pages contain a summary of EIS schemes that we have considered.

They provide access to different types of EIS and to different underlying

investment strategies. These are presented in alphabetical order. Each will be

subject to its own individual charging structure. Inclusion is based upon our initial

assessment of the opportunity and the available market. Additional due diligence

may be required prior to our making a formal recommendation.

Please note that you should not subscribe to

any scheme until you have read the prospectus

and understand the terms and conditions of

the scheme particulars and are aware of the

risks involved with them.

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CHILLINGHAM CLASSICS EIS THE CITY PUB EIS FUND

Target size: 5m Target size: 25m

Minimum Subscription: 10,000 Minimum Subscription: 25,000

Closing Date: 1April 2015 / 30 April 2015 Closing Date: 27 March 2015

Single Company EIS EIS discretionary portfolio

Chillingham Classics Limited specialises in the acquisition, restoration, and sale of historic automobiles.

The company has an experienced management team with a proven track record. The team is led by Max Wakefield, a former professional motorsports competitor, who as a private collector has grown an initial 20,000 purchase into a classic vehicle portfolio worth c500,000. The team also includes Simon Hope, Managing Director of H & H Auctions, one of Europes largest specialist auctioneers of classic vehicles.

This EIS will maintain a high level of asset backing through its acquisitions which should provide a level of risk mitigation for investors. It will seek to return capital to Investors between 3 and 4 years following investment through either a trade sale, share buyback or members voluntary liquidation.

The City Pubs EIS Fund will target businesses which give investors exposure to investments in predominantly freehold pubs, located primarily in affluent cities and larger towns primarily across Southern England.

The Fund is seeking to raise up to 25 million spread across five Pub Companies. It is anticipated that at least 80% of underlying investment will be in freehold pubs with the balance in long leasehold pubs, which will provide a degree of asset backing. The fund has a medium term investment horizon of between 5-6 years.

There is a strong alignment of interest between the operational management team, the investment consultant and shareholders.

The companies will pursue a similar investment strategy to that executed through the City Pub Company (East) PLC and City Pub Company (West) PLC which had a combined turnover of 8.667m in the year ended 29 December 2013 and an unaudited turnover of 10.76m for the nine months to 30 September 2014.

Our view Chillingham Classics is an interesting business proposition that will have broad appeal. The company has a base case scenario that assumes that the classic car market continues to appreciate at its 30 year average compound annual return of 12.6% (excluding revenue from restorations) which produces a tax free return of 54% over 3 years. Its adverse case scenario assumes classic car values drop by 25% which equates to a net loss of 5% for investors after EIS relief.

Our view - City Pub EIS Fund is executed by one of the most experienced and successful EIS pub managers in the industry.

Clive Watson and David Bruce managed the Capital Pub Company PLC which produced for the original investors a total return of 2.43, comprising a tax free capital return of 2.35 and a gross dividend of 8p per 1 invested representing a threefold return, net of tax, for those investors.

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DOWNING RENEWABLES EIS EARTHWORM RENEWABLE ENERGY

SECURED LOANS EIS FUND

Target size: 20m Target size: 20m


Closing Date: n/a Closing Date: 3 April 2015

EIS discretionary portfolio Approved EIS Fund

An opportunity to invest in trading companies that own and operate renewable energy businesses in the UK. It is anticipated that Investors will be given the opportunity to either exit or retain the investment in approximately four years from the date the underlying investments are made.

Focus on renewable energy businesses that will receive regular payments for the generation of electricity (anaerobic Digestion and run-of-river hydro).

Most of the monies invested through the Service will be used to purchase capital equipment which will represent substantial tangible assets.

Investments will only be made in businesses undertaking projects that have planning consent and are based on proven technology.

The Manager does not anticipate that the EIS Companies will use significant debt to finance the capital cost of their assets.

The fund provides an investment opportunity into four pre-identified companies. The monies raised will be deployed into these independently managed companies to build, own and operate infrastructure assets in the recycling and renewable energy sectors:

Beechwood Recycling - established to build, own and operate established in-vessel composting facilities in the midlands.

Henley Biomass - biomass facilities which will put wood waste and other material through a heat treated process to produce renewable energy and heat. The business will use well established steam turbine technology.

Astwood Energy - the business aims to build a series of composting and biomass facilities, the first of which is intended to be a facility in Doncaster, South Yorkshire.

Croydon Gasification Limited plans to build, own and operate a 2.5MegaWatt energy from waste plant in Greater London that will use modular pyrolysis technology to produce electricity.

Our view - to the extent that they are allowable within the EIS rules - businesses that receive regular payments for the generation of electricity and benefit from government subsidies make for attractive EIS investments. Combined with the experience and expertise of Downing, this offer should be attractive to investors at the lower end of the EIS risk spectrum.

Investors will not be charged any fund management fees, monitoring fees or deal fees. The management team will only be entitled to a success based performance fee in relation to each investee company once investors have received 1.20 for every 1 (net 70p) invested.

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GUINNESS EIS 6 IMBIBA LEISURE EIS FUND

Target size: 10m Target size: 3 - 25m


Closing Dates: 1 April 2015 Closing Date: 31 March / 30 September 2015

EIS discretionary portfolio EIS discretionary portfolio

The Guinness EIS seeks to invest in UK sustainable energy companies which demonstrate the attractive investment characteristics of predictable revenues, low technology risk and low correlation with other asset classes. It is anticipated that the EIS will invest in run-of-river hydro power generation projects which divert a proportion of a rivers water through a turbine before returning the water to the river downstream.

Guinness reviews hydro projects that will benefit from Government feed in tariffs (FITs) and sell electricity to local businesses or to the grid. The EIS may also pursue alternative qualifying opportunities which may include Reserve Power, Waste Heat Recovery, Anaerobic Digestion, Solar, Wind and Biomass.

This strategy has been developed with the aim of delivering investment returns in excess of 1.20 per 1.00 invested (net of all fees and before EIS Income Tax Relief).

The fund will acquire a diversified portfolio of leisure businesses in Central London, each with a unique trading strategy. The Fund and its investee companies will seek to achieve capital growth through one or more of the following factors:

Acquisition of exceptional properties;

Improved trading and profitability;

Refurbishment and development;

The creation of a scalable business model;

Improving operations and controls.

Bank debt will be used where appropriate but is not expected to exceed 50% of any Companys projected total capital expenditure. The Manager is targeting a return to Investors of 2.34 for each net 70p invested, being an expected income tax and CGT free IRR of 33% (including income tax relief). This assumes an exit is achieved after five years.

The Fund will invest in longer leasehold properties which will provide a degree of asset backing.

Our view - hydro electricity generation, has become the preferred qualifying trade for business which pursue the logical investment strategy of seeking to benefit from tax reliefs whilst taking the least amount of risk. We have seen in the past that the Government has subsequently sought to intervene where it believes that tax reliefs are applied without a commensurate risk, which is potentially possible with hydro, though early investors have been allowed to continue to benefit.

Our view Imbiba has a successful track record in the industry and has identified a pipeline of opportunities. Their most recent exit returned 5.7x cash, an IRR of 50%, before EIS tax relief. Managers will invest personally in the fund and have a high hurdle rate for performance incentives of 1.50 per 1 invested.

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INGENIOUS PATH FILM PLUS EIS INS ROSEHILL ENTERPRISES EIS

Target size: 4m - 20m Target size: 4m


Closing Date: 27 March 2015 Closing Date: 27 March 2015

EIS discretionary portfolio Single Company EIS

This offer follows the successful launch of the first Path film fund in 2012. Path is the UKs leading independent film distribution and sales company, founded in 1896 and with a first class record in UK and French distribution and international sales.

The service will back companies that have secured UK and French distribution and worldwide representation for their films through Path, whose first-class international sales team will exploit longstanding relationships with US studios and foreign independent distributors to monetise foreign rights. Paths major international hits include Slumdog Millionaire, The Queen, The Iron Lady and Philomena.

The EIS will seek to manage the performance risk on every project by bringing in public subsidies and third party investment wherever possible and by pre-selling rights to international territories on the wholesale market to lock in revenues. The strategy may also enable investee companies to monetise their future income rights through a Path buy-out, providing them with the cash resources to consider further productions.

INS Rosehill Enterprises will identify, purchase, develop and sell a portfolio of high quality show jumping horses. Showjumping has become a major money sport in recent years with events typically sponsored by global luxury brands such as Longines, Rolex and Gucci. Showjumping horses ready to compete at World Championships are reported to command between 1 and 5million.

The advisers, Henk Nooren and Duncan Inglis, have advised the company that between 1st January 2007 and 31 December 2011, they collectively acquired 37 horses that they subsequently sold for a combined value of 4,703,424 and this represents a gross return of 53% over the period (source: Robert Agates & Associates). They also advised that, during this period only one of these horses was sold at a loss. The five horses sold by the company to date have achieved a net return of 85% after costs.

The company is based at modern, well established training facilities owned by the experts in Great Britain and Belgium.

Our view - managed by Ingenious, the UKs foremost investor in the film industry. Their past productions include The Descendants, The Best Exotic Marigold Hotel, Life of Pi and Avatar, the highest grossing film of all time. Investors will also have the opportunity to attend exclusive investor screenings of the services film productions.

Our view the advisers have unrivalled experience in their field. Both competed at an international level and are accredited trainers. Henk Noreen having coached the Netherlands to Olympic Gold in 1992 and Sweden to Olympic Silver in 2004. This offer presents a unique opportunity to participate and potentially profit from a diverse investment with no correlation to traditional investment markets.

20

OXFORD CAPITAL INFRASTRUCTURE SELECT MEDIA PRODUCTION SEIS

Target size: Evergreen Target size: 3m


Closing Date: 12 Feb / 17 March / 1 April 2015 Closing Date: 30 January 2015

EIS discretionary portfolio SEIS discretionary portfolio

An opportunity to participate in asset-backed infrastructure investments. The managers intend to subscribe for shares in companies which own and operate real assets that generate regular income over a long period. These will include, but are not limited to:

Anaerobic Digestion

Grid Support

Hydro Electricity

Local Authority Infrastructure through Private Finance Initiatives (PFI).

Sustainable Farm Infrastructure (e.g. sustainably heated buildings).

The aim is to invest in companies which develop their own assets carrying low technology risk. They prefer assets which offer the protection of industry-standard installation and operational guarantees.

It is intended that investee companies will own assets which will be attractive to future potential acquirers, thereby allowing the company to return capital to investors in a timely manner.

Access to a portfolio of high risk, high potential growth start-up companies operating in the creative media industries. It will offer financing for creative teams, generating opportunities for scriptwriters, music producers, animators, illustrators, authors, television and film producers and software developers to originate and develop new intellectual properties for exploitation.

The Investment Adviser, Great Point Media, understands the risks of investing at the initial stages of a creative project and will leverage its substantial industry knowledge and network of relationships to identify Companies with a strong prospect of succeeding.

It is anticipated that Investors returns from the fund will be derived predominantly through a realisation of shares in the SEIS Qualifying Companies. Following the expiry of a period of three years from the date of issuing the SEIS Qualifying Shares.

Our view infrastructure assets have for some time been a favoured strategy for EIS managers due to the long term and predictable nature of contracts and revenues.

Oxford Capital has an award winning investment team which has invested in more than 40 companies and manages capital on behalf of private investors, family offices, endowments, pension funds and institutional investors.

Our view this is the fourth in a series of SEIS structures which this team has made available.

Through this structure, entrepreneurs not only gain access to vital capital but also to a range of commercial and professional skills to assist in the establishment and growth of their businesses.

21

SENECA EIS PORTFOLIO SERVICE SELECT TELEVISION PRODUCTION EIS

Target size: Evergreen Target size: 4m - 20m


Cannot guarantee full investment in 2014-15 Closing Date: 27 March 2015

EIS discretionary portfolio EIS discretionary portfolio

The Seneca EIS Portfolio Service offers investors the opportunity to build a portfolio of equity investments in UK based SMEs who are seeking an injection of capital to fund their next phase of growth.

A generalist fund, Seneca Partners aim to invest in small qualifying companies with the strongest management teams and strongest growth potential. Their key investment criteria are:

Attractive growth prospects

Defensible market position

Realistic entry valuation expectations

Strong underlying business fundamentals and management team

Opportunity to enhance value from improved financial and operational practices and structures

Exit available between 3 and 4 years

Ability and desire to transact promptly

Their extensive professional networks ensure that their EIS investment deal flow is buoyant. The team expect to complete 15-20 EIS Investment deals per year.

The service will invest across a selection of EIS-qualifying television production companies creating content for major broadcasters. Each Company will focus on producing made-for-television drama and action productions, as the managers believe that this genre of programming has historically experienced a consistent level of market demand from broadcasters and distributors. According to the Pact UK Television Exports Report, dramas made up over 20% of the spending on first run originated network content in 2012, second only to sports content. Furthermore, the survey found that drama was a key driver of UK television exports in 2012.

It is anticipated that each Company will produce and exploit a slate of productions, seeking to generate a base level of revenues, alongside offering the scope for further uncapped returns through the exploitation of residual intellectual property rights.

The Manager anticipates deploying all proceeds of the Service into shares qualifying for the Enterprise Investment Scheme (EIS) during 2014-15.

Our view An experienced generalist manager. To invest in around 20 companies, the team expect to review over 500 opportunities and meet around 200 businesses in total each year.

Although they cannot guarantee that EIS qualifying investments will be made in the current tax year, it will be possible to carry back investments made in 2015-16.

Our view - The Service benefits from the industry knowledge and network of relationships of the Investment Adviser, Great Point Media Limited (GPM). GPM offers a strong and unique track record in the management of media EIS companies. Together, it has over 300 production credits in film and television and has managed over 180 EIS qualifying television businesses.

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SYMVAN TECHNOLOGY SEIS FUND 2

Target size: 1.5m

Minimum Subscription: 10,000

Closing Date: 31 March 2015

SEIS discretionary portfolio

The service will invest across a selection of growth oriented SEIS-qualifying companies at a seed level.

Companies are selected on the basis of the potential to deliver growth and attractive returns to Investors, having developed and protected technology, as well as the experience of their management team.

It is intended that a sister EIS fund will be launched to provide follow-on investments to the SEIS portfolio as and when necessary, as well as pursuing new EIS opportunities.

The fund has identified a pipeline of exciting businesses and investment opportunities. It will provide hands-on support and advice to investee businesses to help them navigate the challenges that young companies frequently face.

The portfolio will be limited to a small number of select technology and media start-ups following the teams deeper, not wider portfolio approach to due diligence.

Our view This is the second year that the Symvan team has launched an SEIS fund. In managing the fund, the directors will be complemented by a range of entrepreneurs and industry experts from media, technology, marketing and advertising.

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Glossary

CGT Capital Gains Tax

EIS Enterprise Investment Scheme

HMRC Her Majestys Revenue and Customs

IHT Inheritance Tax

IRR Internal Rate of Return

SEIS Seed Enterprise Investment Scheme

Important Notes

Examples used are generic and this guide does not constitute investment

advice for the purposes of the Financial Services and Markets Act 2000.

The value of your investment can fall as well as rise and you may not get back

the full amount invested. Past performance is not an indication of future

performance. As mentioned in the guide EIS schemes are higher risk

investments by nature the tax reliefs may mitigate losses but not eliminate

them entirely.

Levels and bases of, and reliefs from, taxation are subject to change and their

value to you depends on your individual circumstances.

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PFP Wealth Planning PFP Wealth Planning 3 Windsor Court Lion House Clarence Drive Red Lion Street Harrogate London HG1 2PE WC1R 4NA Telephone: 01423 523311 Telephone: 0207 400 1860

Our reference: 2002/15/JD 160215

Updated 9 March 2015