Successful offer to waive 3-5% initial frees extended to mid-February on request of advisers battling to beat tax return deadlines
London, 18th Jan 2018:
Award-winning Enterprise Investment Scheme (EIS) and Venture Capital Trust (VCT) specialist Calculus Capital has extended the zero initial fees offer on its new VCT until the middle of February.
Calculus’s initial offer waived the industry standard promoter fees of between 3% and 5% to the end of 2018, but it is now extending that deal to subscriptions made before February 15th, making it one of the best offers in the market.
It follows requests from advisers grappling with client tax returns and investors waiting for bonus cheques.
Madeleine Ingram, Calculus’s Head of Investor Relations, said: “The offer has been very successful but has also attracted interest from advisers and investors who were not able to meet the original deadline and were disappointed. It’s a busy time of the year for advisers as they try to get client tax returns sorted for the end of January. Some regular supporters were waiting for news of their annual bonus too, so we are delighted to be able to agree to the requests for an offer extension.”
Calculus launched its first VCT over a decade ago and the Calculus VCT has consistently hit its dividend targets. Calculus Capital won Best EIS manager at last year’s Growth Investor Awards and was shortlisted in the Best VCT manager category. It was also a finalist in the Best VCT Manager category at Investment Week’s Tax Efficiency Awards.
The Calculus VCT fund, which invests alongside Calculus EIS funds, is aiming to deliver an annual dividend of 4.5%. VCT investments attract 30% income tax relief if held for five years. Dividends are tax free too, and there is no capital gains tax on the sale of shares.
The Calculus VCT is invested in a diversified portfolio of around 30 companies. Investors can commit from £5,000 to £200,000, per tax year.
New rules introduced under the Finance Bill 2017/18 mean EIS and VCT funds have to be invested in genuinely entrepreneurial companies with growth prospects, rather than low-risk asset-backed schemes.
This may act as a constraint on the availability of VCT funds this year, but Calculus, which is looking to raise £10 million, has only ever invested in growth companies and sees no shortage of exciting investment opportunities.
John Glencross, CEO of Calculus Capital, said: “We have always specialised in identifying great businesses with strong management teams that have the opportunity to scale up and generate attract investor returns. We’ve been doing that for 20 years and now is as exciting a time to invest in these businesses as ever. The current level of entrepreneurial activity in the UK is unprecedented in my experience and, in an environment where tax benefits are being constantly eroded, this is one area where the government is committed to being generous to encourage investment in growth.”
After February 15th Calculus’s normal fees will apply – 5% for those applying direct, 3% for those applying through a professional adviser.