How your clients can still invest in EIS-qualifying shares before the tax year ends.

This tax year the Government understandably put an end to the so-called “capital preservation” asset-backed Enterprise Investment Scheme (EIS) offerings that were not in the spirit of the scheme. As a result, there are now fewer opportunities for clients to make EIS-qualifying investments before the end of the current tax year.


And while clients should always consider the investment first and tax reliefs second, we know that tax planning is a crucial part of their decision to invest with us. That is why we expect to invest all the money raised by our Vala EIS Portfolio before the end of the current tax year, in a single tranche.


Clients investing before the end of March will have their subscription 100% invested into EIS-qualifying shares by April 5th. This will grant them EIS income tax relief – 30% of the value of their investment – for this tax year, or allow them to carry back EIS income tax relief to the 2017/2018 tax year. Once they have invested, they must hold the shares for at least three years.


To make this tranche happen we have been working on a number of investments in parallel for the past few months. All the companies will complete our usual due diligence and investment committee process before completion.


Some of the companies we plan to back in this tranche include:


Arksen


Arksen is developing a unique range of semi-autonomous explorer vessels for pleasure, research and commercial purposes capable of operating even in the world’s harshest environments.

The company launched its brand and showcased designs for its first vessels at the Dusseldorf boat show in January 2019 and generated significant press attention, including an article in Forbes. Its potential order book now stands at around £40m, subject to the company completing a prototype vessel scheduled to be finished in June 2020.





Great British Biscotti Company


Based in Dorset, GBBC was founded in 2013 and initially focused on selling biscuits at farmers’ markets in the New Forest area. Today the company’s product range includes a variety of different sweet and savoury flavours available in different types of packaging, ranging from single biscuit packs for the airline industry, through to 1kg boxes of loose biscuits for the food service industry. The company has also recently won a major contract to supply Asda and is in discussions with other large supermarket chains.


GBBC needs further funding to invest in its production facilities, allowing it to increase its output while maintaining product quality – crucial for supplying supermarkets.





PlayStack


Playstack helps game developers publish and market their games. Central to the service is a proprietary technology platform that uses AI to analyse millions of data points in order to promote games to the right consumers. The company achieved turnover of £1.1m in 2018 and is forecasting sales of £5m this year.


The company will use the funds raised to further develop its technology platform and extend its engagement to potential clients and partners.




You can read more about these companies and the others that will be included in the tranche here.

Vala Capital Ltd (FCA number 827386) is an appointed representative of Sapphire Capital Partners LLP, which is authorised and regulated by the Financial Conduct Authority with firm reference number 565716. Our address is Audley House, 12-12a Margaret Street, London, W1W 8RH. 

Investing in start-ups and early stage businesses involves risks, including illiquidity, lack of dividends, loss of investment and dilution. It should be done only as part of a diversified portfolio. The Vala EIS Portfolio is targeted exclusively at investors who understand the risks of investing in early stage businesses and can make their own investment decisions. Any pitches for investment are not offers to the public.

Investments made in companies or EIS funds listed on this website platform may not be covered by the Financial Services Compensation Scheme (FSCS). For more details please contact us or refer to their website, www.fscs.org.uk.
 

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