BES investors can only get the tax relief on their investments when the Inland Revenue gives the scheme certification. If the scheme gets it before February, then PAYE investors can get their tax code changed and instantly benefit from the tax relief.
If the BES scheme gets certification much later then the PAYE investor has to submit a tax return to get the tax relief, which could take several months to come through.
Colin Young, Ernst & Young tax partner, said: 'If the scheme is certified before February you have got the possibility of having your tax code changed. If it isn't then it may well be July or August before you get the benefit.'
The February certification date does not affect investors who are on Schedule D.
Independent adviser BESt Investment is recommending for PAYE investors the Accumulus Froebel BES sponsored by Terrace Hill Capital with a guaranteed exit price of 124p and a five-year return for higher-rate taxpayers of 14.7 per cent and standard rate taxpayers of 10.2 per cent.
It is also recommending the Bessa Lincoln Colleges sponsored by Close Brothers. It has a guaranteed exit price of 120p and returns of 13.9 per cent for higher-rate taxpayers and 9.5 per cent for standard-rate taxpayers.
Another scheme recommended by BESt Investment for PAYE investors is the N&P Loan Back Plus sponsored by Johnson Fry. The scheme has a guaranteed exit of 117p, and offers higher-rate taxpayers a minimum return of 13.8 per cent.
There are about 30 BES schemes open for investment. New issues include the Cavendish CHG scheme sponsored by Smith & Williamson Securities, which has a guaranteed exit of 121p and offers returns of 13.2 per cent for higher-rate and 9.2 per cent for standard-rate taxpayers.
Another on offer is the Tweed Premier Return sponsored by the British Linen Bank, which has a guaranteed exit of 122p and a return of 13.4 per cent for higher-rate taxpayers and 9.4 per cent for basic-rate taxpayers.
BESt Investment 071-936 2037.Reuse content