42 . Glasgow Business January/February 2013
ADVERTORIAL
www.investecwin.co.uk
AVOIDANCE OR PLANNING?
Tax avoidance schemes are a hot topic at the moment and HM Revenue & Customs has produced guidance on what it means by tax avoidance. It makes it clear that tax avoidance is not the same as tax planning which involves using tax reliefs in the way they were intended. For example, claiming tax
relief on capital investments, saving in a tax-exempt ISA or claiming tax relief on pension contributions are all legitimate forms of tax planning. While such actions may
reduce the tax paid, they are not tax avoidance because they involve using reliefs in the way they are intended. So, what steps can higher rate
taxpayers take? Offshore investment bonds should be a consideration for higher rate taxpayers as an investment portfolio which is held within an offshore bond. It will not be subject to either Capital Gains
ADVERTORIAL
www.kelvinfp.com
A PROFESSIONAL AND THOROUGH SERVICE
Kelvin Financial Planning offer financial planning advice to clients on an independent basis. We work free of bias and
conflict of interest and feel that this approach offers significant benefits for our clients. We aim to meet our client
needs by offering a professional and thorough service. All of our advisers are
business owners and have a long-term interest in our company. We put real emphasis upon building long-term client relationships. We offer a range of specific
services, including goal seting and shortfall analysis, investment management, pension planning, tax planning,
insurance services, commercial and residential mortgage advice as well as equity release. Due to recent changes in
financial services regulation we are aware that many financial services companies are changing the way they deal with customers. We are commited to
offering independent advice on a fair and transparent basis. If you are unsetled by
changes with your current financial services provider then please feel free to contact us to hear what we can do to assist.
FOR FURTHER INFORMATION Visit
www.kelvinfp.com or call 0141 548 8111.
Tax or Income Tax which equates to an upliſt of up to 66 per cent. An investment portfolio
within the bond can also be managed on a bespoke, discretionary basis so one would not be tied to what could be a limited range of funds available through the provider of the offshore bond. One is also able to take
regular monthly withdrawals from the bond of up to 5 per cent per annum of the initial amount invested without any tax implications until the full value of the initial investment has been returned. Tis type of planning allows one to benefit from tax efficient investment returns for a significant period of time.
FOR FURTHER INFORMATION
contact Stuart Light at Investec Wealth & Investment on
stuart.light@
investecwin.co.uk or 0141 333 9323.
in each investment round, meaning businesses must first find another source of private sector equity before applying.
The Scottish Co-investment Fund
Te seed fund’s big brother, Te Scotish Co-investment Fund (SCF) is a £72 million fund, investing sums from £100,000 to £1 million. Te SCF isn’t out there in the
market looking for investments, nor can it be approached by individual companies. Instead, it partners with venture capitalists and business angel syndicates, with whom it co-invests on equal terms. In this way, the SCF has been
highly effective in tapping into private sector investment expertise, while also lubricating the flow of venture capital and business angel funding to businesses which may otherwise have struggled.
The Scottish Loan Fund
Te Scotish Loan Fund (SLF) is an entirely different beast, providing mezzanine loans ranging from £250,000 to £5 million on a wholly commercial basis. For the uninitiated, mezzanine finance sits somewhere between bank debt and equity finance, though
day-to-day most businesses will not experience any practical difference to a bank loan. Recipients must have a
significant presence in Scotland, have annual turnover of at least £1 million and be able to show sustainable profits. Since its launch, the fund has lent £10 million across the country.
Business angels
Business angels are essentially wealthy private individuals – who have generally themselves been successful in business – oſten organised into syndicates, to invest in high-growth potential business. Angel investment is
particularly suitable for early stage businesses looking for amounts of equity investment too small for mainstream venture capitalists (£20,000-£250,000). But bringing in angels can
deliver other benefits. Te relationship is oſten more personal than with other types of equity investment, and many angels will look for a hands-on board-level role, potentially offering invaluable knowledge and experience. Tis also lends the company a
certain credibility, making it more atractive to other investors and opening other doors. Te flip-side is that a killer
“A killer business plan is not enough to snag a business angel; both sides need to feel they can work together on a personal level”
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