We are pleased to introduce the Mercia Knowledge-intensive Impact Fund, investing in 8 to 12 knowledge-intensive EIS qualifying companies.
The fund will aim to triple invested capital in 5-7 years, including tax reliefs.
As an HMRC approved knowledge-intensive EIS fund, it will allow investors to claim income tax relief up to one year from when the fund closes.
The fund is open and will close on the 4th April 2022, enabling income tax carry-back to the 2020/21 tax year.
Capital at risk. Please see full risk information below
The main attraction of an HMRC approved fund is that it enables more confidence in tax planning, and by requiring only a single tax certificate, it reduces administration.
When a client invests, you can claim up to 30% income tax relief on EIS investments in the year they invest or carry back to the previous tax year. This is because the investment date for income tax purposes is the date the fund closes, rather than when the funds are deployed.
As usual with EIS, capital gains deferral (of any size) can be made up to three years before and one year after the EIS investment. You can defer a gain even if you have already paid the tax. The vast majority of EIS-qualifying investments attract 100% Inheritance Tax relief via Business Relief.
What to expect:
Information and Risk Warning:
Please note: Past performance is not necessarily a guide to future performance. The value of an investment may go down as well as up, in which case an investor may not get back the amount invested. Investments in small unquoted companies carry an above-average level of risk. These investments are highly illiquid and as such, there may not be a readily available market to sell such an investment. Where an investment is denominated in a currency other than Sterling then changes in the exchange rate between currencies may adversely affect the value of that investment. You or your adviser must provide evidence that you meet the qualifying criteria, such as “high net worth” or “sophisticated investor” certification with your application.
Mercia Fund Management Limited, a subsidiary of Mercia Asset Management PLC, is the manager of the EIS fund and is authorised and regulated by the Financial Conduct Authority.