BES Investment Query

W

Westgolf

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Hi all,

can I ask your opinions on the above topic please. I have seen a BES advertised which I think may be worth a look.My question is this, I'm not a top rate taxpayer so is there any real benefit to be gained by making such an investment ?

Thanks,

Westgolf
 
Yes there actually is. You will still get tax relief at the 20% rate. The investment is a 5 year investment so even if all you get is the tax relief then you will have earned 4% per annum. Still a lot higher than a deposit account. If you picked an BES with an uncapped return you may also earn more that just the tax relief, however I suggest you look for a fund which spreads your investment over a number of companies. This will reduce your risk also.
 
OP, speak face to face with a professional adviser and find their opinions on BES schemes. And like any Investment do some research before making any rash decisions.
 
BES query

Thanks Elliot & Mercman,

I have planned to speak to my own professional advisor about this topic but the reason I posed the question was to get a broader range of opinions on the topic. The scheme I spotted is suggesting 12 - 14% of a return which might I think seem to be a bit optimistic in todays climate of uncertainty.

However against that the 5 year term would take us up to 2015 and who knows what the scenario will be like then.?

Westgolf
 
do you want to name the bes investment and link to get proper view on it

I recently seemed a business plan and cashflow projections of an existing bes company looking for new investment and figures used as far as i can see are not achievable even in boom times.

get proper advise and search on company
 
Hi feltox,

The company is in the transport sector and has grown its traffic rates month on month over the past 3 or 4 years. The website for the placement doesn't go into the same level of detail as the document which arrives in the post but having said that the figures for the period 2007-2009 all correlate.

My query relates to whether the firm can sustain this steady growth going forward in the current economic climate. For example if the volume of traffic using this service drops due to less being exported / imported by this country then the revenue projections and profits will drop sharply.

Because I'm not a top rate taxpayer ( not yet anyway:)) I was wondering if it would be of any great benefit overall if I was to invest say 10k for the five year period or would it just be a lot of effort for a debatable return ?

Westgolf
 
Or maybe you should consider investing the same amount in the iShares DJ Transport ETF. Personally I would prefer to pay tax on profits made from an International ETF rather than nurse losses derived from a BES
 
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