PE Tech Report


Like this article?

Sign up to our free newsletter

HG Tech Fund attracting investors seeking to optimise CGT relief

Highgate Associates and Enterprise Corporate Finance say their EIS fund for UK based high tech businesses is seeing huge interest from investors and entrepreneurs looking to defer capital gains tax commitments through the EIS investment vehicle.

EIS funds are a tax efficient mechanism for investing and with the latest government budget increasing CGT to 28 per cent for higher tax payers many investors are contacting HG Tech Fund Management.

Within the EIS scheme up to three year old capital gains can be rolled into qualifying EIS companies and, provided that the shares are held for a minimum of three years, capital gains tax is only payable on the proceeds at the time of divesting.

Investing in an EIS fund can be a longer-term shelter allowing flexible disposal of shares within annual capital gains allowances over time or can be continually rolled over until moved into a trust fund or within an inheritance fund. This benefit is in addition to the income tax relief provided on all money invested up to GBP500,000 in any one year.

Martin Churchill, and author of the Tax Efficient Review, says: “An EIS fund offers an excellent opportunity for investors and entrepreneurs to shelter capital gains over a period of time. With the recent increase in CGT to 28 per cent for higher tax payers there is a greater than ever need to ensure ongoing tax efficient investments.”

The HG Tech Fund focuses on the UK high tech industry, specifically software businesses with a permanent base in the UK.

Andrew Muir (pictured), co-chairman of the HG Tech Fund, says: “We are seeing a lot of interest in investing in the HG Tech Fund from sophisticated investors who are looking to mitigate their capital gains over time. This fund is an ideal opportunity to shelter capital gains whilst investing in some of the best emerging software companies in the UK.”

The fund is open to sophisticated investors with GBP10,000 or more to invest in a portfolio of early stage high technology companies. This is a medium to long-term investment opportunity with a three to seven year exit strategy although it will be possible to continue to roll profits into future funds if needed.

Like this article? Sign up to our free newsletter