james
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Post by james on Nov 24, 2015 22:56:01 GMT
Thanks, I'll mention any others I see and I'll hope that others here mention whatever they see. Club Finance is: Initial commission: 1% or 0.5% early bird discount before 28 Jan, nothing else. Renewal/annual commission: Club Finance get 0.66% and rebate 0.75% of the first 0.5%, so 0.375% a year for the three years it is paid for. Source for this is the commission statement they link to. I've asked HL if they are willing to match that or substitute an extra 1% initial. Added later - they declined.If you want to buy in more than one tranche be sure to get what you'll want of the Albion VCT as early as possible and fill in the rest later. It filled early summer last year and is likely to be the first to fill again this year. Depending on what the Autumn announcements from the Chancellor are on Wednesday this week they could sell out very quickly. If I recall correctly the next to fill was Crown Place and the rest lasted until the offer timed out. A phone call to them will get you the current status and quite possibly an estimate of how long to go, though that's essentially meaningless until the Chancellor says what he's doing. And we'll have the same situation before/after the main Budget next year as well.
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james
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Post by james on Nov 26, 2015 1:02:50 GMT
Here's the core of the half-yearly results for the AAVC Albion VCT, released on 25 November:
"The results for Albion Venture Capital Trust PLC (the "Company") for the six months to 30 September 2015 showed a total return of 3.7 pence per share, up from 1.1 pence per share for the same period last year. This positive return was a result of uplifts in the third party professional valuations of our hydroelectric schemes and of Radnor House School, as well as an offer received for Kensington Health Clubs Limited. The net asset value for the half year was 72.7 pence per share compared to 71.6 pence per share at 31 March 2015.
During the period, just under £2 million was invested in qualifying investments including £1.3m in two of the three new care homes that we are currently building and £460,000 into Radnor House to help purchase Combe Bank School in Sevenoaks, Kent. Further sums were invested after the half year to fund the further construction of the care homes. £550,000 was received back from our investee companies in the form of loan stock repayments during the period.
Looking forwards, the main focus of our investment activity will be the further construction costs of our three care home projects in Oxford, Reading and Hillingdon (West London), all of which are proceeding according to plan. They are due to open between March and June of next year and we are currently optimistic for their prospects.
In terms of trading progress, the sentiment across the portfolio is generally positive. The Stansted Holiday Inn Express is currently trading at strong levels, while our renewable energy portfolio has been boosted by the two new hydroelectric schemes in Scotland which are trading above budget. Meanwhile, Radnor House, which recorded good GCSE results, saw a continued increase in the number of pupils to 390, while Combe Bank is trading in line with expectations.
Set out at the bottom of this announcement is the sector diversification of the investment portfolio as at 30 September 2015. At that date healthcare and renewable energy investments accounted for approximately 14 per cent. and 21 per cent. of the Company's portfolio including cash. ... As at 30 September 2015, the Company was committed to making further investment of: Shinfield Lodge Care Limited, £3,000,000 Ryefield Court Care Limited, £1,773,000 Active Lives Care Limited, £1,470,000"
They also noted that the changed VCT legislation is expected to cause no material change in their investment policy. There was 10.2 million of cash on hand that'll be ample to cover the planned £6.3 million of spending on the care homes.
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arbster
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Post by arbster on Nov 26, 2015 6:02:46 GMT
Here's the core of the half-early results for the AAVC Albion VCT, released on 25 November: " The results for Albion Venture Capital Trust PLC (the "Company") for the six months to 30 September 2015 showed a total return of 3.7 pence per share, up from 1.1 pence per share for the same period last year. This positive return was a result of uplifts in the third party professional valuations of our hydroelectric schemes and of Radnor House School, as well as an offer received for Kensington Health Clubs Limited. The net asset value for the half year was 72.7 pence per share compared to 71.6 pence per share at 31 March 2015.
[snip] They also noted that the changed VCT legislation is expected to cause no material change in their investment policy. There was 10.2 million of cash on hand that'll be ample to cover the planned £6.3 million of spending on the care homes. Interesting that they say the changes to VCT legislation don't affect them - I thought the Government had excluded any renewable power generation investments from eligibility for VCTs?
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james
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Post by james on Nov 26, 2015 6:49:50 GMT
Interesting that they say the changes to VCT legislation don't affect them - I thought the Government had excluded any renewable power generation investments from eligibility for VCTs? Not just renewable, all power generation. Investments previously made aren't affected by this, just new ones, so the previously made renewable power investments in this aren't affected. Nor are the hotels that were barred some years back for new investments. Here's a news story about the purchase of Combe Bank School.
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james
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Post by james on Nov 26, 2015 14:04:07 GMT
HL declined to match Club Finance.
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Steerpike
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Post by Steerpike on Nov 27, 2015 19:45:31 GMT
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james
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Post by james on Nov 27, 2015 20:48:15 GMT
Merryn had a good old moan about VCTs last year, good mix of comments. Not just last year, she does it quite regularly. Here are some catches: 1. A performance fee based on an increase in net asset value. The Albion VCTs look to pay out almost all returns in the form of dividends, avoiding an increase in NAV. Not all VCTs work that way but dividends are quite commonly how most money gets paid out. Some VCTs have high growth and low dividend policies and it's a big issue with them. 2. Charges simply exist. The estimated returns have to be quoted after anticipated charges and as long as the deal meets the terms and risk level it's not particularly bad, though lower charges are always nice. 3. If you think that the VCT charges seem high, start looking at the amounts P2P providers and introducers take from the total borrower payments of all types. VCTs will rapidly look like low charging angels in comparison. Between initial fees and ongoing charges you might expect a P2P provider to be taking 30-50% and possibly more of the total amount above capital that the borrower is paying. Not necessarily all of them but it's what you'll find from major players like Zopa.
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pikestaff
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Post by pikestaff on Nov 28, 2015 11:39:47 GMT
...3. If you think that the VCT charges seem high, start looking at the amounts P2P providers and introducers take from the total borrower payments of all types. VCTs will rapidly look like low charging angels in comparison. Between initial fees and ongoing charges you might expect a P2P provider to be taking 30-50% and possibly more of the total amount above capital that the borrower is paying. Not necessarily all of them but it's what you'll find from major players like Zopa. One reason I like TC is their fees are relatively low and transparent. This from their website www.thincats.com/Apps/WebObjects/thincats-pfp.woa/ra/Website/14624/14632/about-borrowing.htmlWhat fees do we charge?
There are a few fees attributed to arranging a loan through us, these are:
£500 (plus VAT) listing fee 1% (plus VAT) of the value of the loan on drawdown 0.5% p.a. to cover administration fees (charged monthly on the outstanding loan balance)
Our Sponsors also charge a fee which varies depending on which Sponsor and the loan itself. Typically their fees range from 2-4% on drawdown and 0.5% p.a. to cover monitoring fees (charged monthly on the outstanding loan balance).
I've done a couple of worked examples assuming a 3% drawdown fee by the sponsor. On a 12 month interest-only loan of £200k at 12%, TC gets 10% of the total return; the sponsor gets 20%; and lenders get 70%. On a 5 year interest-only loan of £500k at 11%, the lenders share increases to over 85%. [Image deleted 11/12/20 to save space]
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stevio
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Post by stevio on Dec 3, 2015 15:48:00 GMT
Does anyone know of an accurate online tax calculator that takes into account:
- Salary - Savings Interest - Dividend income - Personal Pension contributions
I know the HMRC Self Assessment will do this for you, but I am not able to access the current year as I have not yet submitted 2014/15
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james
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Post by james on Dec 3, 2015 18:52:53 GMT
I don't know of one but it probably exists somewhere. I do it with a spreadsheet and monthly entries for all anticipated or actual payments to project to end of tax year.
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stevio
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Post by stevio on Apr 16, 2016 11:59:36 GMT
Just filling in my tax return for 15/16, first year of using VCT's
Nice that VCT's have ensured that I don't pay any IT and my wife receives a substantial rebate
I wasn't aware that all income was charged to tax BEFORE the reliefs are taken off - VCT relief is taken off first, before even 10% tax credit for dividends, tax already paid through employment and bank interest. Had I realized this, I could have even got a substantial rebate and we could have increased my wife's rebate as well.
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mike
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Post by mike on Apr 17, 2016 7:45:49 GMT
So VCT relief can be set off against tax on savings?
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james
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Post by james on Apr 17, 2016 22:59:40 GMT
So VCT relief can be set off against tax on savings? Yes, on interest but not capital gains. The ordering issues can be relevant for things like determining whether the £5,000 0% interest income band applies, a question to which I do not know the answer, though stevio 's post is interesting. Say you start at £16k of work income, £10k of P2P and other interest income, do VCT buys reduce your income tax liability before the £5000 band is considered, so that the interest is partly in the £5000 band and hence taxed at 0%?
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stevio
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Post by stevio on Apr 18, 2016 7:26:32 GMT
There are different eligibility requirements for the 5k 0% Savings Starting Rate band and the new 1k 0% Personal Savings Allowance
5k 0% Savings Starting Rate band = Claim as long as SALARY AND SAVINGS income is below £16,000 (doesn’t take into account Dividends) 1k 0% Personal Savings Allowance = Claim as long as SALARY AND SAVINGS income is below Basic Rate Tax Band (£43,000 16/17) (doesn’t take into account Dividends)
With your example James, if your savings and salary are 26k, - you wouldn't receive the 5k 0% Savings Starting Rate band - you would receive the 1k 0% Personal Savings Allowance
You could use VCT's to reduce the tax you have incurred, but it wouldn't give you back the 5k 0% Savings Starting Rate band
However, should you have income that takes you outside the Basic Rate Tax Band, I wonder if Pension payments that increase the Basic Rate Tax Band, would mean that you would then still be eligible for the 1k 0% Personal Savings Allowance?
I am playing round with the calculation in 15/16 tax return at the moment to see the most relief I can receive from VCT's
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james
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Post by james on Apr 18, 2016 11:34:54 GMT
Thanks, that's how I thought it worked and how it has seemed to work for me but i'm always open to possible good news.
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