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 September 2024.

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 June, 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: capital gains tax deferral

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

Case Study: income tax relief

Ian

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.

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. EIS investments are restricted to high net worth or sophisticated individuals, or those advised by a qualified financial adviser, per FCA rules. Evidence of qualification is required with your application. Tax treatment depends on the individual circumstances of each client and may be subject to change in future. Read the full risk warnings in the Fund documentation before applying. Past performance does not predict future results. These investments are illiquid and may lack a readily available market for selling. Investments in non-Sterling currencies may be affected by exchange rate changes. Mercia Fund Management Limited, a subsidiary of Mercia Asset Management PLC, is the EIS fund manager and authorised and regulated by the FCA (FRN: 524856).