23 November 16

Autumn Statement 2016: No significant impact on Triple Point's products

Following the announcements, we can confirm that our existing VCT, EIS, and Business Relief products are not affected.

We set out below a summary of the Autumn Statement announcements, where relevant to our current offerings, and provide an update on our open products.

Triple Point VCTs and the Triple Point EIS Service

Supplemental to the 2016 Autumn Statement, a document was published covering tax updates and technical changes where “no substantive change is being made to the policy”. Instead the document aims to provide information about ongoing development of policies that are of relevance primarily to tax professionals and specialists. We have included the detail here, specifically as it relates to tax-advantaged venture capital schemes.

The Finance Bill 2017 will include amendments to:

  • Clarify the EIS and SEIS rules for share conversion rights, for shares issued on or after 5 December 2016
  • Provide additional flexibility for follow-on investments made by VCTs in companies with certain group structures to align with EIS provisions, for investments made on or after 6 April 2017
  • Introduce a power to enable VCT regulations to be made in relation to certain shares for share exchanges to provide greater certainty to VCTs

A consultation will also be carried out into options to streamline and prioritise the advance assurance service – which is welcome news.

Finally, in 2015 the government stated that it would consider options around allowing replacement capital for VCT and EIS investments. It is now clear that the government will not be introducing this flexibility at this time, but will review the position over the longer term.

None of these developments affect our current offers.

Triple Point Income VCT plc

Triple Point recently launched a new offer for E Ordinary Shares in the established Triple Point Income VCT plc which has raised £58m since inception. 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 an overallotment facility of a further £15m.

The closing dates for the offer are 31 March 2017 for allotment in the 2016/17 tax year and 27 April 2017 for allotment in the 2017/18 tax year unless fully subscribed earlier or otherwise extended by the Board.

The Triple Point EIS Service

The Triple Point EIS Service targets investments in companies operating in a wide range of sectors targeting returns of £1.10 - £1.15 per share and an exit after the minimum holding period. 

Investors submitting new applications to the Triple Point EIS Service will be allotted shares into a minimum of two EIS-qualifying companies. The Triple Point EIS Service is open all year.

Social Investment Tax Relief

It was announced that the long-awaited expansion to the Social Investment Tax Relief (SITR) scheme will now go ahead. From 6 April 2017, investments of up to £1.5m can be made into SITR-qualifying social enterprises, significantly increasing the impact of the scheme. Prior to this the limit was restricted to approximately £300,000 over three years. In July 2016, NPC and Big Society Capital estimated that, in total, £3.4m had been invested to date in charities and social enterprises via SITR, of which £1m was raised by Triple Point as part of a pilot scheme. We look forward to seeing the draft legislation and continuing our commitment within this sector.

Triple Point Estate Planning Businesses and Services

The announcements on inheritance tax were limited and do not appear to have a material impact on the provision of our estate planning strategies.

Triple Point manages a number of estate planning businesses and services, including the Triple Point Estate Planning Service (TPEPS). As a reminder, investments in TPEPS are eligible for Business Relief (BR) after a maximum of two years and provides 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. It continues its successful trade, which has 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 or via bespoke entry routes which can be accessed to meet a range of investment requirements.

Please let us know if you would like more information or to discuss our products generally.