BES Investment

[Lemurz]

In advance of the 31 Jan deadline, has anybody come across a decent BES investment worth investing a few €€€ in?

[markowitzman]

Went into a wind farm one but to be honest they are all a bit of a toss of a coin. Davy bes fund at least would give you some diversification. Wind farm one is fully subscribed for what it is worth.

[Howitzer]

Originally Posted by markowitzman

Went into a wind farm one but to be honest they are all a bit of a toss of a coin. Davy bes fund at least would give you some diversification. Wind farm one is fully subscribed for what it is worth.

Are you saying there's a fund in Davys that you can invest in which counts as a BES? That doesn't sound right.

[Nermal]

This is the Davy's fund:
http://www.davydirect.ie/other/pubar...Prospectus.pdf

It does seem to qualify for relief, frighteningly high entry fee of 3.5% though, can't find details of an annual fee but I'm sure it's equally ridiculous.

Would like to throw another question into this thread - is there anywhere one could get a list of companies looking for BES funding?

[Howitzer]

And I thought the tax break for investing in films was contrived, this is pretty hokey to say the least.

Given the fact that the previous funds only made 12% and 9% compounded annually INCLUDING the tax break these funds seems pretty high risk (as you might expect). In light of that the 3.5% entry fee does seem excessive.

[Lemurz]

The Sunday Business Post did a two page spread on Jan 21 listing various companies raising cash. Nothing jumped off the page at me however.

Looked at the Davy/BDO fund myself, thinking diversification would be good, however as already posted, the past/projected returns quoted are worse than a deposit account ignoring the tax break, not to mention the 3.5% entry fee.

Seems like all the advisers swallow the tax relief in fees and just return your cash gross after 5 years.

[ClubMan]

Originally Posted by Lemurz

the past/projected returns quoted are worse than a deposit account

Are they? 9%-12% is mentioned above which is a lot better than deposits over recent years. I'm not recommending this - just wondering about this specific statement.

[GreatDane]

Originally Posted by ClubMan

Are they? 9%-12% is mentioned above which is a lot better than deposits over recent years. I'm not recommending this - just wondering about this specific statement.

Agreed, despite the fact this is a rising interest rate envoirnment we live in ... also, lets not forget, all interest rates quoted are before DIRT me thinks.

Does anyone know, if these type of gains were achieved on a future BES investment, what tax, if any, would be payable .. I'd suspect CGT, but don't know enough about tax to be sure ?

Regarding the Davy's / BDO fund I wonder if we are correct or not, in suspecting the fees of 3.5% are high, given the funds are well established etc ? .. Surely, if they were significantly overpriced, we'd all be seeing this across the newspapers etc ?

Thanks

[Irldigi]

What is significance of 31st Jan deadline ?

Is it to ensure you can claim tax relief back to 2006 tax year ?

Is it true that you can only get the relief in the year in which the investment is made ? Can't be carried from year to year ?????

Cheers,

D

[onekeano]

Thought I read in the Davys material that they had not yet been approved by Revenue but they had made an application - sounded very iffy to me just a week before the cut off, the returns sounded pretty crap too given the tax break.

Roy