Deepbridge Life Sciences Seed Enterprise Investment Scheme

The global Life Sciences industry is one of the leading sources of innovation. Over the past 100 years, life science research has resulted in scores of breakthrough therapies and new methods for the early detection of disease. Major trends, such as the worldwide increase in populations over the age of 60, will drive the future need for an increasing range of new, cost-effective health care products for decades to come.

It is clear that the endeavours and applications of life sciences are both broad and increasingly global in scope. As outlined in the Strategy for UK Life Sciences, published by the UK Government, the overall picture is of an industry developing well to capitalise on strong UK geographic bioscience clusters, the shift to more specialist service companies, and new models of research and development collaboration. 

The introduction of the new funding initiative in 2011, namely the Seed Enterprise Investment Scheme, seeks to bolster and enhance the increasing strength of the life sciences industry.An opportunity for investors, the Deepbridge Life Sciences SEIS seeks to participate in this changing business environment, securing compelling investment opportunities derived from a long-lasting legacy of scientific research and innovation in the United Kingdom.

The Deepbridge Life Sciences SEIS seeks to fund companies with exciting new technologies that satisfy the needs of large and growing markets. The overarching focus of the Deepbridge SEIS is to offer investors companies engaged in the development of therapeutics for the following areas:

  • Anti-viral drug discovery and development
  • Antibiotic drug discovery and development
  • Neurodegenerative disease therapeutics
  • Cancer diagnostics and therapeutics
  • Autoimmune and other metabolic disorders therapies

SEIS relief is available to investors in respect of each investment in an Investee Company made by the Deepbridge SEIS, by reference to the date the investment is made. Under SEIS, the main tax advantages that may be claimed by a qualifying investor are as follows:

  • 50% income tax relief up to a maximum investment in SEIS of £100,000 per tax year per individual.
  • Capital gains that are reinvested in SEIS shares qualify for a 50% exemption from CGT.
  • Tax free gains. There is no capital gains tax liability on gains on the first disposal of shares which have been held for 3 years in SEIS qualifying companies, on which SEIS income tax relief has been obtained.
  • 100% inheritance tax exemption after each individual investment has been held for at least 2 years.
  • Income tax carry-back relief. Investors can claim income tax relief for the tax year in which they invest in the underlying companies, as well as the tax year immediately preceding the investment. This enables the investor to claim tax relief in the period(s) most advantageous to him/her.
  • Loss relief (providing total tax relief of up to 72.5%). A loss on any qualifying investment in the portfolio, irrespective of the overall performance of the portfolio, can be offset by individuals against income of the tax year of loss, or the previous year, or against capital gains of the tax year of the loss and future years.

Please note that tax benefits depend on personal circumstances, are not guaranteed and rely on UK tax legislation, which may change in the future.

 

The 100% Rule

The Deepbridge Life Sciences SEIS is an investor fee-free SEIS opportunity. Investors are therefore not charged any fees at point of investment. Upfront and ongoing fees are paid by the Investee Companies: this advantage allows investors to enjoy 100% of SEIS tax benefits and to have 100% of their investment actually put to work earning potential investment returns.

 

The Target Return

The investment objective of the Deepbridge Life Sciences SEIS is to generate substantial tax-efficient mid-case capital growth of 250pfor every 100p invested, over a minimum 6 year period.

Exit events will be sought at the earliest opportunity after the third anniversary of the investment made.

 

Who is the Deepbridge Life Sciences SEIS Targeting?

The Deepbridge Life Sciences SEIS is targeting UK taxpaying individuals:

  • Seeking an attractive, medium term investment opportunity
  • With income tax liability in the preceding and/or current tax years
  • With large capital gains to defer
  • Who will benefit from IHT relief.

The minimum individual investment in the Deepbridge Life Sciences SEIS is £10,000.

 

Risks

Investors should be aware that investment in smaller unlisted companies (including SEIS qualifying companies) carries with it a high degree of inherent risk whether or not it is done through a diversified portfolio and regardless of any tax advantages which such an investment might carry and/or any steps taken to attempt to mitigate that risk. Investors are unlikely to have access to their capital for at least a period of 6 years. Investors should be aware that thier capital is at risk and they may lose all or some of their investment.  Please refer to the Deepbridge Life Sciences SEIS Information Memorandum for further information regarding risks. 

Information on this webpage relates to and is provided by Deepbridge Advisers Limited.

The content of this webpage should not be construed as financial advice. Any decision to invest should be made only on the basis of the relevant documentation for each investment. Past performance is not necessarily a guide to future performance. The value of an investment may go down as well as up and investors may not get back the full amount invested. Investments in small unquoted companies carry an above-average level of risk. These investments are highly illiquid and as such, there may not be a readily available market to sell such an investment. Deepbridge Capital LLP, Deepbridge Advisers Limited and Sapia Partners LLP (together "the Sponsors," or "Sponsor) do not provide specific individual advice on the suitability of investments with regard to a potential investor's individual circumstances, risk tolerance or investment objectives and investors should seek independent financial advice if they are in any doubt whether a product is suitable for them.