8 March 17

2017 Budget Statement - No significant impact on Triple Point's products

Budget Statement 2017:  No significant impact on Triple Point's products

 

This afternoon, the Chancellor of the Exchequer, Philip Hammond, delivered his first Budget Statement to Parliament and, having considered the announcements, we can confirm that our existing VCT, EIS, Advancr Bonds and Business Relief products are not materially affected.

 

1. Changes to VCT/EIS rules previously announced – none of which adversely affect our VCT/EIS offerings.

As announced in the Autumn Statement 2016, the government will amend the requirements of the EIS and for VCTs to:

  • Clarify rules for share conversion rights.
  • Provide additional flexibility for follow-on investments made by VCTs.
  • Introduce a power to enable VCT regulations to be made in relation to certain share for share exchanges to provide greater certainty to VCTs.

2. Changes to VCT/EIS advance assurance process.

It was confirmed that a summary of responses to a consultation on options to streamline and prioritise the advance assurance service will be published after the Budget.

3.  Patient capital review

The government also announced a review of ‘patient capital’ with the aim “to ensure that high growth businesses can access the long-term capital that they need to fund productivity enhancing investment. We understand that VCT and EIS funding will be included as part of the review.

4. Changes to Class 4 National Insurance contributions (NICs) affecting self-employed earners including Members of Generations Capital LLPs.

The government has already announced that it will abolish Class 2 NICs from April 2018. Today it was announced that the main rate of Class 4 NICs will increase from 9% to 10% in April 2018, and to 11% in April 2019. Taken together with the abolition of Class 2 NICs, this means that only self-employed individuals with profits above £16,250 will have to pay more NICs.

Below is an update on Triple Point's current offers

Triple Point Income VCT plc E Share Offer

Towards the end of 2016, Triple Point launched an offer for E Ordinary Shares in the established Triple Point Income VCT plc. Building on our experience and track record, the E Share Fund will acquire and maintain a portfolio of Qualifying Investments where the focus will be the delivery of infrastructure and industrial support services, providing investors with regular tax free income and a return of capital over a ten to twelve year timeframe.

The VCT is seeking to raise £15m (with a potential overallotment facility of up to a further £15m).

With only 16 working days left before Triple Point’s current planned exit VCT offer expires for applicants in the 2016/17 tax year, we have raised more than 83% of our initial target and if your clients may be interested in the Offer, we encourage you to contact Triple Point as soon as possible.

 

Triple Point Estate Planning Businesses and Services

Triple Point manages a number of estate planning businesses and services, including the Triple Point Estate Planning Service (TPEPS) and the Triple Point Estate Planning Partnership (TPEPP). As a reminder, investments in TPEPS and TPEPP are eligible for Business Relief (BR) after a maximum of two years and provide access to a choice of two core strategies; Generations and Navigator.

The Generations strategy targets capital preservation through the provision of lease and asset finance to good quality companies and the public sector. The Generations businesses continue to trade successfully, and have now seen over 10 years of consistent, positive returns.

The Navigator strategy targets capital growth through the provision of loan and asset finance to a wide range of SMEs. It has consistently generated a strong, positive return for investors towards the upper end of its target range.

Generations and Navigator are both open for applications via the Triple Point Estate Planning Service and the Triple Point Estate Planning Partnership, a bespoke entry route primarily for Corporates, which can be accessed to meet a range of investment requirements.

Triple Point Advancr Bonds

Following high demand for our introductory offer, Triple Point will be launching a new tranche of Advancr Bonds, offering fixed-rates,  with a choice of 1, 2 or 3 year terms.

These can be held either directly, or in the Advancr Innovative Finance ISA or in selected SIPPs, with corresponding tax savings.

The bonds provide your clients, both retail and corporate, with the opportunity to invest in our commercial leasing and lending business; Triple Point Advancr Leasing plc, which mirrors Triple Point's highly rated Navigator strategy. 

Risk Warning: past performance is not a guide to future performance and investors’ capital is at risk.