Noble’s Corporate Venture

Tax-effective specialist Noble Fund Managers has launched a new fund that allows companies to claim significant tax breaks. Noble says its Corporate Venturing Scheme is the first one of its kind to be set up formally in the UK. Qualifying companies, such as those run by business owners nearing retirement, will receive 20 per cent corporation tax relief by investing in this portfolio of unquoted or Aim companies chosen by Edinburgh-based Noble.

The Treasury introduced the Corporate Venturing Scheme in the April 2000 Budget. To claim the tax relief the money must back trading companies with gross assets of less than £15 million, similar to those that meet the EIS and VCT rules.

Investing companies can claim 20 per cent of the amount they have invested to reduce their corporation tax bill, possibly to nothing. Companies can invest as much as they want under the scheme. The investment must be held for three years otherwise the relief could be withdrawn.

It is possible for tax on any capital gains made via the scheme to be deferred if the proceeds are reinvested in similar qualifying companies.

Under the Noble scheme, director Charles McMicking will invest the money in a broad spread of unquoted and Aim investments. He says the scheme ‘provides the capability for smaller companies to invest in a tax-efficient manner, exposing such companies to new opportunities under the stewardship of a proven management team’.

Further details can be obtained from Noble & Co on 020-7367 5000.

[27/06/02]