Mercia’s EIS is a tax-efficient technology fund seeking to generate returns of 3x invested capital, including tax reliefs, over five to seven years.

We accomplish this by creating a diverse portfolio of approximately 12 companies per fund, across innovative sectors such as life sciences, digital health, artificial intelligence, software, cleantech and deep tech.

By investing in companies across the UK's regions with modest capital requirements, with many of the best regional deals found off-market, we can buy well whilst offering our investors with the best opportunities to maximise returns.

Our next fund close will be at the end of June 2024 and is expected to be fully deployed within six to nine months.

Find out more about our Mercia EIS fund:

Capital at risk. Please see full risk information below

Key features

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A strong track record

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Portfolio of approx. 12 companies

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3x invested capital target

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£25,000 minimum subscription

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5-7 year holding period

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Closes September, December and March

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Investor portal access

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EIS3s available

Unlocking tax benefits with EIS

EIS offers more than just investment potential. It also brings valuable tax benefits, including income tax relief, capital gains tax deferral, and inheritance tax relief. These advantages enhance the attractiveness of the investment proposition, providing investors with valuable financial incentives.

Capital gains deferral (of any size) can be made up to three years before and one year after the investment and you may defer a gain even if you have already paid the tax. Most EIS-qualifying investments attract 100% Inheritance Tax relief via Business Relief.

Explore our tax planning case studies to gain insights into the benefits that can be experienced by investors.

Case Study: 

Cameron is a company director who originally purchased shares for £400k and has sold them for £500k: this created a taxable capital gain of £100k, and therefore a £20k capital gains tax (CGT) liability.

His financial adviser recommends an EIS to defer his capital gain, whilst also taking advantage of income tax relief. As well as the income tax relief Cameron will benefit from, he will not pay any capital gains tax on his £100k profit for many years, or even indefinitely if he continues to re-invest into EIS.

Cameron

VIDEO: EIS explained

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Start an application

Registering

After registering your email address you will receive a link via email allowing you to complete the application.

Submitting on behalf of a client

Please select whether you are applying for yourself or if you are an adviser applying on a client's behalf.

If the latter, once complete the form will be emailed to your client where they may review and accept the agreement.

Transferring funds

Once submitted, we will confirm once the application has been approved, at which point the subscription may be sent via bank transfer using the details provided.

Following this, we will confirm receipt of funds to you and log-in details to the online Investor Centre will be sent via email to both you and the client within 5 working days.

Queries & support

For any questions about the fund or support whilst submitting an application, please contact Stefan.

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Stefan Helm, Digital BD Manager

stefan.helm@mercia.co.uk

07377 383 609

Information and Risk Warning:

*Don’t invest unless you’re prepared to lose all the money you invest. This is a high-risk investment and you are unlikely to be protected if something goes wrong. Take 2 minutes to learn more. Please note that investments made into the Mercia EIS Fund should be regarded as being of a long-term and illiquid nature, of significant and high risk. Please read the full risk warnings in the Fund documentation before applying.

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.