Two of our favourite SEIS for this tax year
Archived article: please remember tax and investment rules and circumstances can change over time. This article reflects our views at the time of publication.
SEIS offer considerable tax benefits. For every £1 you invest, you could get up to 64p back in tax relief. If it goes well, your returns are amplified thanks to the tax reliefs. And even if everything went completely wrong the maximum you could effectively lose is as little as 13.5p.
By investing in SEIS, you support Britain’s newest and smallest companies, which are vital to the economy.
But which investments could you consider?
Goldfinch SEIS Fund – the most popular SEIS amongst Wealth Club clients
The Goldfinch SEIS Fund is by far the most popular SEIS amongst Wealth Club investors.
It offers remarkable tax savings – up to 50% income tax and capital gains tax reliefs – coupled with a sensible investment strategy in our opinion. I have invested myself.
It will invest in 5-10 companies set up to develop film, TV or video games. Its main objective is to return investors’ capital, with a modest growth target of £1.25 for every £1 invested (not guaranteed).
Previous projects include the TV show ‘Go 8-Bit’, hosted by comedian Dara Ó Briain. Current projects include the development of four apps based on the global pre-school hit Teletubbies.
Just opened – Amplify Music SEIS 5 – a music SEIS with downside protection
Following on from Amplify 4 in which I invested myself last year, Amplify Music SEIS 5 will invest in five artists with a few recordings under their belt and an established fan base. The fund will potentially profit not just from recording sales, but also from publishing, live events and merchandising.
Importantly, at least 50p per £1 invested should be underpinned by ‘minimum guarantees’. These include recording advances (against future sales), publishing advances (against future royalties) and live performance guarantees (against future fees). When you consider SEIS tax relief of 50%, an investor should benefit from considerable downside protection.
In addition, the fund is particularly well placed to choose artists with potential. It is a joint venture between Amp Channel Music and the Music Managers Forum (MMF), the global trade body for artist managers. MMF board members who are responsible for selecting the artists represent internationally-acclaimed artists such as Arctic Monkeys, Robbie Williams, Radiohead, Mumford and Sons and Sir Paul McCartney.
The target return is £1.45 per £1 invested (not guaranteed).
This article is not intended to be advice or a personal recommendation to buy the investments mentioned, nor is it a research recommendation. Wealth Club aims to highlight investments we believe have merit, but investors should form their own view on any proposed investment and read the provider’s documents carefully. Photo credit: Images Money