Fresh Thinking

Enterprise Zone Syndicates

December 2008

This is an investment opportunity that suits 40% tax payers.

Enterprise Zones where first introduced way back in 1981 by the then Environment Secretary Michael Heseltine.

The intention was to stimulate industrial and commercial activity in areas targeted for economic regeneration.

To attract private sector investment, 100% initial tax allowances are given on commercial property development in Enterprise Zones.

Since 1984 in excess of £1 billion has been invested in collective Enterprise Zone Investment Schemes. The Government has announced that these schemes will cease towards the end of 2011.

Due to the generous tax incentives and the very limited supply of available land very few attractive EZ's come to the market nowadays.

When they do, demand is often ten times more than availability!

A new EZ is being launched which invests in a new £300,000,000 77,000 sq ft Data Centre on the massive Cobalt Business Park in North Tyneside.

The minimum investment is £50,000 which requires the individual investor to write out a cheque for £21,650 as the balance is funded by a loan which is secured solely on the Data Center itself. A 40% tax payer would receive a tax rebate/saving of £19,790, thereby meaning a net investment of just £1,860 for a £50,000 share in the syndicate.

If you are interested in more details please click here to download a summary document.

NB: EZ syndicates are a complex investment which are only suitable for higher rate tax payers who are experienced investors. Due to being invested in a single property they should be viewed as high risk.

"No investment decision should be taken based on the content of this website. Always take full individual advice first, the regulations governing tax rates and investments may change in the future."

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