Calculus today announced the launch of its HMRC-approved Knowledge Intensive Enterprise Investment Scheme (EIS) Fund 2. The new offering follows the first successful Knowledge Intensive EIS Fund, which closed in April 2023 and is on track for full investment within the coming weeks.
Closing on 5th April 2024, the Fund will aim to return £2 tax free for every £1 invested and focuses on the two fastest growing sectors in the UK – technology and healthcare. The Fund offers a portfolio of at least six companies and has a minimum investment of £25,000. Investors in the Fund should be able to take 30% income tax relief in this tax year (or carry back to 22/23).
The offering will once again allow investors to support innovative, purposeful UK companies driving the digital revolution forward and improving healthcare. Typically, a Knowledge Intensive Company carries out research and development or innovation to create intellectual property (IP). Knowledge Intensive Companies tend to be young, innovative businesses employing skilled individuals. At least 80% of the Fund’s capital will be invested into businesses carrying out research and development to create new IP.
John Glencross, Chief Executive and Co-Founder of Calculus, commented: “Calculus has been investing in the UK’s most innovative companies since launching the first HMRC-approved EIS fund in 1999. Over time, it has established a well-regarded track record for delivering profitable exits for investors.
“This new Fund provides investors the opportunity to support exciting and innovative companies within the healthcare and technology sectors. It not only offers more straightforward tax planning to investors, but also provides the conscientious investor with a chance to support a new wave of UK companies while enhancing their own wealth.”
Investors can take advantage of this HMRC-approved fund to claim income tax relief at up to 30%, unlimited tax-free capital gains, capital gains tax deferral relief, loss relief, and full inheritance tax relief. An advantage of being an approved fund is that investors can claim income tax relief in the tax year the fund closes, or carry it back to the previous tax year. By contrast, investors in ordinary, unapproved EIS funds must claim their tax relief at the point that the fund invests in the underlying companies, which may cross multiple tax years and be more challenging for tax planning.
The Fund follows a successful period of exits for Calculus. In the last three years, Calculus has completed 19 exits delivering an average return of 2x investment cost. The new Fund offers investors access to exciting, innovative businesses underpinned by a strong investment landscape supported by the UK’s first-rate research universities, robust Government support of KI businesses, and a thriving M&A market.
