MMC launches new EIS product for guaranteed investment this tax year
MMC Ventures has launched an HMRC Approved Knowledge Intensive EIS Fund offering retail investors an opportunity to invest in the transformative technology companies MMC is known for and access tax planning and administrative advantages.
We are delighted to be one of the first EIS fund managers to offer retail investors the benefit of HMRC’s revised Approved fund EIS rules. Via our new Knowledge Intensive EIS Fund, MMC investors will be able to invest in the high-growth technology companies MMC is known for without the two most common pain points of EIS investing: timing uncertainty and administrative burden.
With most EIS funds currently in the market, investors can claim income tax relief when the funds are deployed into underlying companies. This can take anywhere between 12-24 months for full investment. However, with the new Knowledge Intensive Approved EIS funds, the relief is dated when the fund closes (with carry back options depending on individual circumstances). In the case of the MMC Knowledge Intensive Fund, it will close on 1st April 2021. In addition, investors in these Approved funds will receive one EIS5 certificate, rather than the typical 10-15 separate EIS3 certificates, depending on the fund.
HMRC has introduced these tax changes in response to an industry-wide consultation designed to provide more flexibility to investors in claiming relief and to align Approved funds with the UK’s Modern Industrial Strategy. Additionally, the changes aim to improve the supply of capital into Knowledge Intensive Companies – young and innovative businesses that invest heavily in research and development to bring their product or service to market.
“MMC has always been committed to supporting innovation, both in the businesses we back and as a fund manager ourselves. The launch of this new product reflects that commitment as we strive to solve the most common challenges for our investors. But fundamentally this is not just about a new investment structure, it’s about encouraging more investors to support innovation, which in turn increases productivity, creates jobs, and boosts growth for UK PLC.”Bruce Macfarlane, Managing partner, MMC
We are well-positioned to channel funds into these innovative businesses, having backed UK technology startups and scaleups for more than 20 years alongside our deep research into transformative technologies, including Artificial Intelligence (AI) and Blockchain.
Notable MMC EIS investments to date include:
Gousto, which announced its most recent funding round in November valuing the business at more than $1 billion
Signal AI, the artificial intelligence-powered media monitoring and market intelligence platform that transforms the world’s information into accessible, actionable business knowledge
Bloom & Wild, the UK's most loved online florist which recently launched its first store-based partnership with Sainsbury’s.
Investors wishing to invest in MMC's Knowledge Intensive EIS Fund and take advantage of the opportunity to fully invest in the 2020/21 tax year can apply here.
Read more on MMC's new EIS product via Wealth Adviser.