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Tax benefits, key information and who can invest.

Ever wanted to invest in the fastest growing startups?

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Well, you can't. Or at least you couldn't. The best investments all go through Venture Capital funds, most of whom receive their funds from High Net Worth Individuals, pension funds and other institutional investors. Those that are available are opaque, confusing and hard to evaluate. 

 

further is democratising investments into Venture Capital funds, enabling Everyday Investors to access the fastest growing startups and the full range of tax benefits and rebates available by making these investments. 

Through our tools and materials, we aim to help you fully understand the alternative investments that we offer, to enable you to ensure that the investment is right for you. 

Who can invest?

High-net worth Investor

You have an annual salary of £100,000+, net assets of £250,000+, have invested in more than one unlisted company in the last two years or been a member of a business angel syndicate or network for at least six months. 

Sign up as a HNW Investor

Sophisticated Investor

An individual who is working, or have worked in the two years prior to the date in question, in a professional capacity in the private equity sector, or in the provision of finance for small and medium enterprises, have made more than one investment in an unlisted company in the two years prior to the date in question or are a director of a company with an annual turnover of at least £1 million.

Sign up as a Sophisticated Investor

Everyday Investor

 If you are neither of these, you can classify as an Everyday Investor.

However, as investments into Venture Capital funds are different to regular share and savings options, we will be taking you through a series of informational videos to ensure that you are confident that the investment is right for you and your financial goals. 

Sign up as an Everyday Investor
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Tax Benefits

The UK government has been supporting innovation funding for over 20 years through tax benefits to investments in fast growing small companies. The tax benefits are substantial and can be claimed by any UK tax payer. Where you see an EIS, SEIS or VCT tag on the investment option, you’ll be able to access the following benefits:

Fund type
Tax rebate
Loss protection?
Other benefits
Limits
VCT
30% of investment amount
No
Capital gains tax relief (disposal only)
£200k/annum
EIS
30% of investment amount
If the investment results in a loss, up to 45% of the net loss can be claimed back*
Capital gains tax relief (deferral and disposal) Inheritance tax relief
£1m/annum
SEIS
50% of investment amount
If the investment results in a loss, up to 45% of the net loss can be claimed back*
Capital gains tax relief (deferral and disposal) Inheritance tax relief
£100k/annum

*Based on being a higher rate taxpayer. The % you can claim is based on the highest rate of tax you pay. 

Performance Scenario calculator

Use our calculator to work out your actual risk and potential returns on an investment. 

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Your total risk and return

Scenario
Total return after 5 years
Gain over initial outlay
Actual annual return
All investments fail
£0
-£1,350 (this is your total risk, as you will be able to reclaim a further £2,250 tax relief)
-6.5%
0% average annual return
£10,000
£0
12%
10% average annual return
£16,105
£12,505 (free of capital gains tax)
28%
20% average annual return
£24,833
£21,233 (free of capital gains tax)
42%

Initial investment: £10,000

Income tax rebate: £5,000

Capital gains tax relief (at 50%, based on 28% tax rate): £1,400

Total initial outlay after reclaims: £3,600

How do I access these benefits?

 

After your investment has closed, you will be sent a guide on reclaiming tax which will guide you through every step of the process. The necessary EIS, SEIS and VCT certificates will be available through the further portal. 

 
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Fees

Pay nothing extra to invest with Further.

All investors pay the same level, whether High Net Worth or Everyday Investor. Further charge no additional fees. The general fees are as follows, however they will differ from fund to fund and can be seen on the Investment Opportunities page. 

Fee type
Fee
Upfront fee
From 2.5%
Annual fee
From 1.5%
Exit fee
20% on all profits of the investment above a 100% return

*Based on average fees and maximum fund length 

What do the fees cover?

 

The fees cover all expenses of sourcing and managing the investment, professional fees and payment processing fees. The Venture Capital funds spend a huge amount of time managing your investment to generate a return and the fee pays for the fund overheads while they do it. 

What does Further get? 

Further makes the same percentage as a financial advisor would. All financial advisors charge the fund a percentage commission of the investment made by their High Net Worth client, and so you pay the same if you are investing £500 or £500,000. 

Is the fee taken out of the expected return?

 

No - the expected return is after fees and tax. 

 

Total fees generally far lower than tax saving.

Average fund return, after all taxes and fees*

8.1%

 

Risks

Our investment products put capital at risk.

Remember, the value of an investment can fall as well as rise. Investors may not get back the full amount they invest.

Tax treatment depends on individual circumstances and could change in the future.

Fund investments are not protected by the Financial Services Compensation Scheme.

 

Returns

Historically, our funds have generated an average of 8.1% return, after tax and fees. 

Is the return guaranteed?

No - the past performance is no guarantee of future success. Venture investments are inherently risky and they may be above or below the target, depending on the success of the investment and the market scenarios. 

When can I withdraw my money? 

For most funds, this will be when the fund full exits. Each fund will target to fully exit within a particular time frame, generally within 3-10 years, and will look to have exited all investments by this point. However, it may be extended if the fund management team decide that it is beneficial to hold onto the investment. 

For VCT funds, you will be able to withdraw your funds at any point - however, if you have received a tax rebate (see above), you will need to hold onto your investment for at least 5 years to keep this rebate. 

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