Downing Planned Exit VCT 2 - G Shares - The Tax Shelter Report
Downing Planned Exit VCT 2 - G Shares - The Tax Shelter Report
Downing Planned Exit VCT 2 - G Shares - The Tax Shelter Report
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TrackRecordoftheCompany<br />
<br />
TrackrecordoftheOrdinary<strong>Shares</strong><br />
<strong>The</strong>Company’sOrdinary<strong>Shares</strong>(launchedinthe2004/05taxyear)soldalltheirinvestmentsandreturnedtheproceeds,mainlyin<br />
2008and2009,whichtotalled90.4pperOrdinaryShareandrepresentedanincreaseof51%onthenetoftaxcostof60pper<br />
OrdinaryShare.<strong>The</strong>compoundreturn(calculatedasanIRRaftertaxreliefs)was11.2%perannumtaxfree,whichisequivalentto<br />
18.7%perannumtoa40%taxpayer.<strong>The</strong>OrdinaryShare'slistingontheLondonStockExchangewascancelledinAugust2012.<br />
<br />
Trackrecordofthe2008<strong>Shares</strong>,2009<strong>Shares</strong>and2011<strong>Shares</strong><br />
<strong>The</strong>trackrecordoftheCompany'sshareissuesin2008,2009and2011aresetoutbelow.<br />
<br />
Trackrecordofthe2008<strong>Shares</strong>,2009<strong>Shares</strong>and2011<strong>Shares</strong><br />
<br />
<br />
<br />
<br />
<br />
<strong>Tax</strong>yearof<br />
Net TotalReturn Increaseover <br />
launch cost 1<br />
<br />
todate 2 <br />
<br />
netcost(%)<br />
2008<strong>Shares</strong> 08/09 70.0p 107.5p +53.6% <br />
2009<strong>Shares</strong> 09/10 70.0p 91.0p +30.0% <br />
2011<strong>Shares</strong> 11/12 70.0p 94.6p +35.1% <br />
<br />
1 Net cost is the initial offer price of 100p per share less the income tax relief of 30% available to investors in each of the<br />
Company'sshareclasses.<br />
2 TotalReturniscumulativedividendspaidtodateplusthemostrecentlyannounced(unaudited)netassetvalueforeachshare<br />
classinpencepershare.<br />
<br />
Investorsshouldnotethattheyarerequiredtoholdsharesforaminimumperiod(currentlyfiveyears)toretaintheinitialincome<br />
taxreliefof30%.Inanycase,pastperformanceisnotaguidetofutureperformance.<br />
<br />
<br />
CoinvestmentPolicy<br />
<br />
<strong>The</strong>Company'sonlyformalcoinvestmentrelationshipsarewiththeother<strong>Downing</strong><strong>VCT</strong>s,<strong>Downing</strong>'sIHTandEISfunds(together<br />
the"Funds").Ithasbeenagreedthatallocationswillbeofferedtoeachpartyinproportiontotheirrespectivefundsavailablefor<br />
investment,subjectto:(i)aprioritybeinggiventoanyoftheFundsinordertomaintaintheirtaxstatus;(ii)thetimehorizonofthe<br />
investmentopportunitybeingcompatiblewiththeexitstrategyofeachFundand(iii)therisk/rewardprofileoftheinvestment<br />
opportunitybeingcompatiblewiththetargetreturnforeachFund.Intheeventofanyconflictsbetweentheparties,theissueswill<br />
beresolvedatthediscretionoftheindependentdirectors,designatedmembersandcommitteesoftherelevantFunds.<br />
<br />
<br />
Directors<br />
<br />
<strong>The</strong>CompanyhasaBoard,comprisingthreeDirectors,allofwhomarenonexecutiveandindependentoftheManager.<br />
<br />
HughGillespie(Chairman)isnonexecutivechairmanof<strong>Downing</strong><strong>Planned</strong><strong>Exit</strong><strong>VCT</strong>s3–9andanonexecutivedirectorof<strong>Downing</strong><br />
Income<strong>VCT</strong>3plcandBurgessGroupplc.HewasformerlyadirectorofHillSamuelBankLimitedandnonexecutivedirectoror<br />
chairmanofanumberofpubliccompanies.<br />
<br />
Dennis Hale was previously an investment director of Financial Management Bureau Limited ("FMB"), a firm of independent<br />
financialadvisersbasedinCumbria.Hewasresponsiblefor<strong>VCT</strong>researchwithinFMB,whoseclientshaveinvestedin<strong>VCT</strong>ssince<br />
1997. Prior to founding FMB in 1987, he worked for several life assurance companies. Hewasan Associateof the Institute of<br />
Actuaries and holds the Investment Management Certificate. He graduated from the University of Hull with a degree in<br />
Mathematicsin1974.Heisalsoadirectorofanumberof<strong>Downing</strong><strong>VCT</strong>s.<br />
<br />
MichaelRobinsonhasover25years'experienceintheprivateequityindustry.Hespent25yearsat3iplc,wherehewaslatterlya<br />
directormanagingalargeportfolioofequityinvestments.HequalifiedasacharteredaccountantwithDeloitteHaskins&Sellsin<br />
1979andisalsothenonexecutivechairmanofLimbs&ThingsLimited.<br />
<br />
<strong>The</strong>Directorswillbeinvestingatleast£15,000undertheOffersonthesametermsasInvestors.<strong>The</strong>totalinvestedbythepartners<br />
andemployeesof<strong>Downing</strong>in<strong>Downing</strong><strong>VCT</strong>sisover£2million.<br />
<br />
<br />
7
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