IFP breaks ground on enterprise scheme

The first fund investing in companies that qualify for the Government's Enterprise Investment Scheme has been launched, writes Nic Cicutti.

The IFP Taxsaver Fund aims to raise £2.5m to invest in a range of unquoted companies while offering various tax benefits to investors.

It is being launched by Independent Financial Partnership, a Harrogate-based firm of financial advisers that deals with clients of accountants and solicitors.

Investors in the fund, the first to be launched since it was announced in the November 1993 Budget, will receive income tax relief at 20 per cent on qualifying investments of up to £100,000 in this tax year.

They also receive capital gains tax relief if they stay in the fund for at least five years.

The IFP Taxsaver fund has been designed by Tony Granger, who has helped to launch a number of financial products on behalf of insurance companies.

Mr Granger said: "The fund will only invest in unquoted companies with strong management teams, a proven track record and high profit potential which needs expansion capital."