Don’t invest unless you’re prepared to lose all the money you invest. This is a high-risk investment and you are unlikely to be protected if something goes wrong.

Inheritance Tax Service

An asset backed investment for investors looking to reduce the inheritance tax paid on their estate
Key documents
How to invest
  • Our initial fee is only 1% + VAT for new investments made into the Seneca IHT Service.

Should fall within the £2.5m 'BR/APR allowance'

Asset backed

Targets a 4% p.a. return (income or growth)*

What is the Inheritance Tax Service?

The Seneca IHT Service is designed to reduce the amount of Inheritance Tax payable on your estate.

The Service aims to do this after only two years by utilising Business Relief, whilst minimising the risks to the amount you invest and seeking a return of 4% p.a.* which can be paid to you as income, left to help your investment grow or a mixture of the two.

Any shares issued under the Seneca IHT Service are not quoted on any market and should therefore form a part of your £2.5m ‘BR and APR allowance’, assuming that you have owned them for at least two years at the time of your death.

Importantly, if your circumstances change, you can access your capital by giving 1 month’s notice.

What are the aims of the Service?

1

To invest your money in such a way that it should qualify for 100% relief from Inheritance Tax after only two years**

2

To minimise the risk to the capital you invest

3

To generate a return of 4% p.a.* which can be paid to you as income, left to help your investment grow or a mixture of the two

How will my money be used?

Money invested in the service is used to fund secured commercial lending to hundreds of UK counterparties. Lending is deemed a qualifying trade for Business Relief purposes, meaning that the shares an investor holds in the lending companies should be free from inheritance tax**. There are three types of lending we undertake:

Commercial property

In recent years, this funding has been used to fund a portfolio of serviced office buildings, an out-of-town retail superstore and a household name supermarket. The serviced office buildings have traded particularly well in recent years, reflecting an increase in demand for the type of flexible workspace they provide as more companies allow their employees to adopt flexible working.

Asset based lending

This funding comprises stock and vehicle financing to hundreds of counterparties sitting below the headline exposure to each asset class, which increases diversification and reduces concentration risk. Being shorter term lending, the stock financing is particularly helpful in helping the service deliver the quarterly dividends for investors seeking income and liquidity when paying out capital to the beneficiaries of a late investor’s estate.

Social housing

This funding is used to purchase good quality residential housing, typically used by local authorities and similar government bodies to provide accommodation to a variety of vulnerable individuals or those with care requirements.

Risks to consider

You may lose money

Loans made by the investee companies may not be repaid in full or at all, resulting in losses that affect the value of your investment. When your shares are sold, the Net Asset Value of the investee companies may be lower than it was at the time you invested, or the price achieved may not represent the full Net Asset Value of those shares.

Target returns are not guaranteed

If you have invested for growth, the amount of any future growth in the value of your investment is not guaranteed. If you have invested for income, the amount of any future dividends is not guaranteed.

It may take longer to withdraw your money

Your investment will be used to buy shares in one or more unquoted companies. There is no market in which these shares can be traded and therefore they can be more difficult to sell. Withdrawal requests are facilitated by the disposal of shares held and are therefore conditional on either someone being willing to buy the shares or cash being available in the relevant investee companies to redeem them.

Growth strategy

What type of loans have been made?

The underlying asset classes providing the security for the growth strategy are currently as above.

Please note that the companies in which the Seneca IHT Service invests and the composition of their loan books may change over time, particularly as loans are repaid and new loans are made.

Figures shown are correct as at March 2026.

How has the growth strategy performed?

The graph shows the NAV per share (in pence) for investors in the growth strategy for the five year period ending 31 March 2026. Over that period, the share price has increased by c. 22%.

Since the Service was launched in April 2014, every investor who invested for growth and has held their shares for at least 2 years has seen their investment grow.

Past performance is not a guide to future returns. Your capital is at risk, you may get back less than you invest.

Income strategy

What type of loans have been made?

The underlying asset classes providing the security for the income strategy are currently as above.

Please note that the companies in which the Seneca IHT Service invests and the composition of their loan books may change over time, particularly as loans are repaid and new loans are made.

Figures shown are correct as at March 2026.

How has the income strategy performed?

Since its launch in October 2017, the target income has been paid in full and on time. In addition, investors have seen the value of their capital maintained throughout.

Figures shown are correct as at April 2026.

Past performance is not a guide to future returns. Your capital is at risk, you may get back less than you invest.

Fees & charges

Initial fee1%
Share purchase fee0.5%
Annual management charge (paid by investors)0%
Performance fee0%
Withdrawal fee***0.5%
Share sale fee0.5%

All fees subject to VAT. For a detailed overview of all charges please download the Information Memorandum.

 

* Target returns, whether income or growth, are not guaranteed. You may get back less than you invest.

** as long as the value of your BR and APR qualifying assets does not exceed the £2.5m threshold

*** Withdrawal Fees are not charged on any dividends payments made to you.

 

Key documents

Important information

Target returns are not guaranteed. Past performance in not a guide to future returns. Your capital is at risk and you may get back less than you invest. Tax treatment depends on individual circumstances and can be subject to change, if in doubt seek advice from your tax adviser.

How can I invest?

We recommend that you seek independent financial advice before you invest. Please make sure that you have fully read and understood the Information Memorandum and Terms and Conditions applicable to the IHT Service. Please also read our Custodian’s Terms of Business. To make your investment into the Service, please request an Application Form using the button below. Alternatively, please speak to our Client Team for more information.

Request an Application Form

Further information

Inheritance Tax (IHT) is charged on the value of the items and money you leave to your beneficiaries when you die. Some of your assets are free from this tax (see below) but those that are not will be taxed at 40%.

Anything left to your spouse or civil partner should be exempt from Inheritance Tax. However, if you are leaving your estate to other beneficiaries, it is only the first £325,000 of your assets that are free from Inheritance Tax: this is known as the ‘individual nil rate band’.

In addition, there may be a further ‘residence nil rate band’ which can apply to the value of a family home in certain circumstances. This ‘residence nil rate band’ is currently £175,000, although it is reduced if the total value of your estate exceeds £2 million. If the total value of your estate is £2.35 million or more, no ‘residence nil rate band’ will be available.

Both the ‘individual nil rate band’ and the ‘residence nil rate band’ thresholds are frozen at these levels until at least 2031.

In addition to these ‘nil rate bands’, there are a number of ways to reduce your family’s exposure to IHT, such as insurance policies, gifts and trusts. These have varying degrees of cost and complexity and each take different lengths of time to become effective. However, these methods can involve the loss of control or access to your assets (potentially permanently).

In April 2025, HMRC reported that IHT receipts for the 2024/25 tax year were a record £8.2bn. Following the changes introduced in the October 2024 Budget, the OBR (Office of Budget Responsibility) predicted this will increase to an annual figure of £13.9bn for the 2029/30 tax year.

Business Relief (formerly known as Business Property Relief) was introduced in 1976, as a way of encouraging investment into certain trading businesses and to prevent them being broken up in order to pay Inheritance Tax. Business Relief reduces the value of a business or its assets when working out how much Inheritance Tax has to be paid.

If you leave shares that qualify for 100% Business Relief to your beneficiaries and have owned them for at least two years at the time of your death, no Inheritance Tax should be due on the value of those shares. However, not all businesses or business assets will qualify for Business Relief. Even where such relief is available, it may also only be available at 50% rather than 100%.

Business Relief is assessed by HMRC on a case-by-case basis and only when the investor dies. It is not possible to guarantee qualification in advance nor obtain any form of “advance assurance” that it will apply.

The rate of Business Relief (‘BR’) available will depend upon the shares held and also the value of your estate.

  • The first £2.5m of unquoted BR and Agricultural Property Relief (‘APR’) qualifying assets will obtain relief at 100%. If the value of such assets exceeds £2.5m, the balance will obtain relief at 50%.
  • Regardless of the total value of these qualifying assets, any shares in companies quoted on the Alternative Investment Market (‘AIM’), and other junior markets which are not designated as recognised stock exchanges (e.g. Aquis), will only obtain Business Relief at 50%.

If you survive your spouse or civil partner, the £2.5m ‘allowance’ mentioned above can be increased by any unused portion of their £2.5m allowance. This allows couples to pass on up to £5m of such qualifying assets with 100% relief.

Rest assured that any shares issued under the Seneca IHT Service are not quoted on any market and can therefore be available to form a part of your £2.5m ‘allowance’ on which you receive 100% Business Relief, assuming that you have owned them for at least two years at the time of your death and the usual other BR qualification criteria are met.

If the purchase of a Business Relief qualifying asset is funded from the proceeds of sale of another BR qualifying asset, you may not need to own the new asset for two years before it qualifies for relief.

The new asset may be considered as ‘replacement property’ and, if it is, will qualify for Business Relief if the original and replacement property were owned for a total of at least two years out of the five prior to the date of your death.

This can be very helpful when an investment in our IHT Service is funded from the sale of a business, another BR investment solution or EIS qualifying shares.

However, the rate of that Replacement Property Relief is not necessarily the rate of Business Relief that would be available on the asset held on the date of your death. Section 107(2) of the Inheritance Tax Act, states that Replacement Property Relief “shall not exceed what it would have been had the replacement or any one or more of the replacements not been made”. So, if one of the assets held within that two year qualification period would only qualify for 50% Business Relief, that will be the rate of Replacement Property Relief available.

When IHT planning, there are a number of factors you may wish to consider. Whilst a tax saving of up to 40% is not to be overlooked, there is no reason why funds should not be working now and providing benefits during your lifetime.

For example, leaving your capital intact but taking a regular income from it through retirement can help you and your family members to enjoy the benefits together. Whether it’s paying school fees, enjoying family holidays or even providing for long term care, the money you intend to leave for your beneficiaries can still be enjoyed, all under your control.

Indeed, if your circumstances change and you need access to some or all of your capital, you can’t simply give notice to ungive a gift, particularly where you have put that gift into a trust.

No. The Service only invests in private limited companies, none of which are listed on any stock market. Each company’s share price is therefore based on its net asset value (“NAV”) and has no correlation with share price movements of quoted companies, such as those that make up the Alternative Investment Market (“AIM”).

It is important to consider what inherent risks are being taken with your capital in order to achieve a an IHT saving. It is also important to understand the volatility levels that you will see in any investment you make. Whilst you may accept some exposure to the volatility of AIM share prices, please remember that AIM investments cannot form a part of your first £2.5m of BR and APR qualifying assets £1m that should qualify for 100% BR from 6th April 2026. BR is only available at 50% on AIM quoted shares (meaning your estate effectively pays IHT at 20% on them).

We have designed our IHT Service to appeal to investors who are looking to reduce the amount of Inheritance Tax that will be paid on their estate. They will have experience of investing in tax advantaged investments (eg. EIS, VCT) or buying shares in FTSE 100, FTSE 250, smaller quoted (e.g. FTSE 350), AIM quoted or unquoted companies.

Those investors will understand what factors drive the movement of share prices and how in turn that impacts the value of the product. They will also understand and accept the risks associated with making an investment in the Service (see pages 18 to 19 of the Information Memorandum). Their current financial situation will mean that they do not need access to the amount they invest for at least three years or need a guaranteed income from it. They should also be able to withstand the loss of some or all of the amount they invest.

You should not invest in this Service if you lack the requisite knowledge and experience, are looking to invest for less than three years, need your investment to pay a guaranteed income or are risk averse or have a low tolerance to risk.

The minimum investment amount is £25,000. There is no maximum investment amount.

We understand that your circumstances might change. For example, you may need to access some or all of your money invested in the Service in order to pay for long term care. As long as you have invested in the Service for at least 12 months, you can give 1 month’s notice to withdraw some or all of your money. A Withdrawal Fee will apply. As the shares you hold will be in one or more private companies that are not quoted on any Stock Market, any withdrawals are subject to sufficient liquidity being available in the Service or the companies in which you are invested.

If you opt to receive any returns as income, they will be paid as a preference share dividend four times a year, subject to the relevant investee companies having adequate distributable reserves. The payment dates on which this income will be paid are on or around 15th January, 15th April, 15th July and 15th October each year.

For investors opting for income, shares are allotted four times a year, on or around:

  • 2nd January
  • 1st April
  • 1st July
  • 1st October

If you are a financial adviser, you can access the reviews using the following links…

MICAP review (registration required)

Hardman & Co review (available on request)

Other products

Growth Capital VCT

A generalist VCT aiming to generate returns from a diverse portfolio of both private and AIM quoted growth capital investments.

View product

Commercial Property Funds

Since 2018, Seneca has offered investors the ability to invest in a range of commercial properties that includes flexible office space, hotels and retail superstores.

More info

Important notice

The products and services shown on this website place capital at risk. Investors may receive less in returns than they have invested. Investments may not allow for capital to be withdrawn on demand. If an investment provides tax relief then this relief is subject to change and is dependant on personal circumstances. Any reference to past performance or forecasted performance is not a reliable indicator of future performance. Seneca Partners recommends that any investor seeks specialised financial and/or tax advice before investing. Seneca Partners does not provide advice and the information on this website, including but not limited to news, should not be construed as such. Please confirm that you understand this warning and wish to proceed.

I understand



Risk summary

(Estimated reading time: 2 minutes)

Due to the potential for losses, the Financial Conduct Authority (FCA) considers this type of investment to be high risk.

What are the key risks?

  1. You could lose all the money you invest
    •  If the business you invest in fails, you are likely to lose 100% of the money you invested.
    • Advertised rates of return aren’t guaranteed. If a borrower doesn’t pay you back as agreed, you could earn less money than expected or nothing at all. In addition, if the tenant of the property being financed doesn’t pay the rent due as agreed or vacates the premises, you could earn less money than expected. A higher advertised rate of return means a higher risk of losing your money.
  2. You are unlikely to be protected if something goes wrong
    • Protection from the Financial Services Compensation Scheme (FSCS), in relation to claims against failed regulated firms, does not cover poor investment performance. Try the FSCS investment protection checker at https://www.fscs.org.uk/check/investment-protection-checker/.
    • Protection from the Financial Ombudsman Service (FOS) does not cover poor investment performance. If you have a complaint against an FCA-regulated firm, FOS may be able to consider it. Learn more about FOS protection at https://www.financial-ombudsman.org.uk/consumers.
  3. You won’t get your money back quickly
    • This type of business could face cash-flow problems that delay payments to investors. It could also fail altogether and be unable to repay any of the money owed to you.
    • Even if the business you invest in is successful, it may take several years to get your money back. You are unlikely to be able to sell your investment early.
    • Even if you are able to sell your investment early, you may not receive all of your money back or the full value of your investment. In addition, you may have to pay exit fees or additional charges.
    • The most likely way to get your money back is if the business is wound up following the sale of the underlying property or is bought by another business. Neither is guaranteed to happen with the envisaged timescale or at all.
    • Depending upon how your investment is structured and the rate and frequency of any interest paid, it could take 10 years or longer to receive back an amount equal to the amount you invested. You should not expect to get your money back through the payment of dividends.
  4. This is a complex investment
    • This makes it difficult to predict how risky the investment is, but it will most likely be high.
    • You may wish to get financial advice before deciding to invest.
  5. Don’t put all your eggs in one basket
    • Putting all your money into a single business or type of investment for example, is risky. Spreading your money across different investments makes you less dependent on any one to do well.
    • A good rule of thumb is not to invest more than 10% of your money in high-risk investments. (See www.fca.org.uk/investsmart/5-questions-ask-you-invest).

If you are interested in learning more about how to protect yourself, visit the FCA’s website at www.fca.org.uk/investsmart

Request details of upcoming investments– Seneca Select EIS Portfolio Service

Application Form Request – Seneca Select EIS Portfolio Service


Risk summary

(Estimated reading time: 2 minutes)

Due to the potential for losses, the Financial Conduct Authority (“FCA”) considers this investment to be high risk.

What are the key risks?

  1. You could lose all the money you invest
    • If a business you invest in fails, you are likely to lose 100% of the money you invested in that business. Most start-up businesses fail. 
  2. You are unlikely to be protected if something goes wrong
    • Protection from the Financial Services Compensation Scheme (FSCS), in relation to claims against failed regulated firms, does not cover poor investment performance. Try the FSCS investment protection checker at https://www.fscs.org.uk/check/investment-protection-checker/.
    • Protection from the Financial Ombudsman Service (FOS) does not cover poor investment performance. If you have a complaint against an FCA-regulated firm, FOS may be able to consider it. Learn more about FOS protection at https://www.financial-ombudsman.org.uk/consumers.
  3. You won’t get your money back quickly
    • Even if the business you invest in is successful, it may take several years to get your money back. You are unlikely to be able to sell your investment early.
    • For companies whose shares are not listed on any exchange (‘unquoted’ or ‘private’ companies), the most likely way to get your money back is if the business is bought by another business or lists its shares on an exchange such as the London Stock Exchange. These events are not common.
    • For companies whose shares are listed on an exchange (such as the AQSE or AIM), the most likely way to get your money back is if the business is bought by another business or your shares are sold on that exchange. The latter can only occur if there is a willing buyer.
    • If you are investing in a start-up or EIS qualifying business, you should not expect to get your money back through dividends. Such businesses rarely pay these.
  4. Don’t put all your eggs in one basket
    • Putting all your money into a single business or type of investment for example, is risky. Spreading your money across different investments makes you less dependent on any one to do well.
    • A good rule of thumb is not to invest more than 10% of your money in high-risk investments. (See https://www.fca.org.uk/investsmart/5-questions-ask-you-invest).
  5. The value of your investment can be reduced
    • The percentage of the business that you own will decrease if the business issues more shares. This could mean that the value of your investment reduces, depending on how much the business grows. Most start-up businesses issue multiple rounds of shares.
    • These new shares could have additional rights that your shares don’t have, such as the right to receive a fixed dividend, which could further reduce your chances of getting a return on your investment.

If you are interested in learning more about how to protect yourself, visit the FCA’s website at www.fca.org.uk/investsmart

Risk summary

(Estimated reading time: 2 minutes)

Due to the potential for losses, the Financial Conduct Authority (FCA) considers this investment to be high risk.

What are the key risks?

  1. You could lose all the money you invest
    • If the business you invest in fails, you are likely to lose 100% of the money you invested. Most start-up businesses fail.
    • Advertised rates of return aren’t guaranteed. This is not a savings account. If the business doesn’t pay you back as agreed, you could earn less money than expected or nothing at all. In addition, if the tenant of the property being financed doesn’t pay the rent due as agreed or vacates the premises, you could earn less money than expected. A higher advertised rate of return means a higher risk of losing your money.
  2. You are unlikely to be protected if something goes wrong
    • Protection from the Financial Services Compensation Scheme (FSCS), in relation to claims against failed regulated firms, does not cover poor investment performance. Try the FSCS investment protection checker at https://www.fscs.org.uk/check/investment-protection-checker/.
    • Protection from the Financial Ombudsman Service (FOS) does not cover poor investment performance. If you have a complaint against an FCA-regulated firm, FOS may be able to consider it. Learn more about FOS protection at https://www.financial-ombudsman.org.uk/consumers.
  3. You won’t get your money back quickly
    • This type of business could face cash-flow problems that delay payments to investors. It could also fail altogether and be unable to repay any of the money owed to you.
    • Even if the business you invest in is successful, it may take several years to get your money back. You are unlikely to be able to sell your investment early.
    • Even if you are able to sell your investment early, you may have to pay exit fees or additional charges.
    • The most likely way to get your money back is if the business is bought by another business or is wound
      up following the sale of the underlying property. These events are not common.
    • If you are investing in a start-up business, you should not expect to get your money back through dividends. Start-up businesses rarely pay these. This investment aims to make quarterly repayments that comprise both a partial repayment of capital and interest, although this is not guaranteed. It could take over 14 years to receive back an amount equal to the amount you invested.
  4. This is a complex investment
    • This makes it difficult to predict how risky the investment is, but it will most likely be high.
    • You may wish to get financial advice before deciding to invest.
  5. Don’t put all your eggs in one basket
    • Putting all your money into a single business or type of investment for example, is risky. Spreading your money across different investments makes you less dependent on any one to do well.
    • A good rule of thumb is not to invest more than 10% of your money in high-risk investments. (See https://www.fca.org.uk/investsmart/5-questions-ask-you-invest).

If you are interested in learning more about how to protect yourself, visit the FCA’s website at www.fca.org.uk/investsmart

Important notice

Please note that you have clicked to leave the Seneca Partners website. Seneca Partners Limited is Authorised and Regulated by the Financial Conduct Authority (FCA). The website you have requested to visit is an unregulated Seneca business and you will not therefore be afforded the protections offered by an FCA authorised and regulated business.

Please click ok below to continue to the Seneca Bridging website.

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Important notice

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Risk summary

(Estimated reading time: 2 minutes)

Due to the potential for losses, the Financial Conduct Authority (FCA) considers this investment to be high risk.

What are the key risks?

  1. You could lose all the money you invest
    • If the business you invest in fails, you are likely to lose 100% of the money you invested.
    • Many of the loans ultimately financed by your investment are made to borrowers who can’t borrow money from traditional lenders such as banks. These borrowers have a higher risk of not paying back their loan.
    • Advertised rates of return aren’t guaranteed. If a borrower doesn’t pay back their loan as agreed, you could earn less money than expected. A higher advertised rate of return means a higher risk of losing your money.
  2. You are unlikely to be protected if something goes wrong
    • Protection from the Financial Services Compensation Scheme (FSCS), in relation to claims against failed regulated firms, does not cover poor investment performance. Try the FSCS investment protection checker at https://www.fscs.org.uk/check/investment-protection-checker/.
    • Protection from the Financial Ombudsman Service (FOS) does not cover poor investment performance. If you have a complaint against an FCA-regulated firm, FOS may be able to consider it. Learn more about FOS protection at https://www.financial-ombudsman.org.uk/consumers.
  3. You won’t get your money back quickly
    • Some of the loans financed by your investment will last for several years. You may need to wait for your money to be returned even if the borrower repays on time.
    • Some Managers may give you the opportunity to sell your investment early through a ‘secondary market’, but there is no guarantee you will be able to find someone willing to buy.
    • Even if your agreement is advertised as affording early access to your money, you will only get your money early if someone else wants to buy your shares or the company in which you are invested has sufficient available capital to buy them from you. If no one wants to buy, it could
      take longer to get your money back.
    • If you are investing for growth, you should not expect to get your money back through dividends as the Service is not designed to pay dividends to investors seeking growth. If you are investing for income, it will take at least 25 years to get your money back purely through dividends.
  4. Don’t put all your eggs in one basket
    • Putting all your money into a single business or type of investment for example, is risky. Spreading your money across different investments makes you less dependent on any one to do well.
    • A good rule of thumb is not to invest more than 10% of your money in high-risk investments. (See https://www.fca.org.uk/investsmart/5-questions-ask-you-invest).
  5. The value of your investment can be reduced
    • The percentage of the business that you own will decrease if the business issues more shares. This could mean that the value of your investment reduces, depending on the basis on which these new shares are issued.
    • If these new shares have additional rights that your shares don’t have, such as the right to receive a fixed dividend, this could further reduce your chances of getting a return on your investment.

If you are interested in learning more about how to protect yourself, visit the FCA’s website at www.fca.org.uk/investsmart

Application Form Request – Seneca IHT Service


Risk summary

(Estimated reading time: 2 minutes)

Due to the potential for losses, the Financial Conduct Authority (“FCA”) considers this investment to be high risk.

What are the key risks?

  1. You could lose all the money you invest
    • If a business you invest in fails, you are likely to lose 100% of the money you invested in that business. Most start-up businesses fail. Please see page 14 of the Information Memorandum for an overview of the types of businesses this fund invests in.
  2. You are unlikely to be protected if something goes wrong
    • Protection from the Financial Services Compensation Scheme (FSCS), in relation to claims against failed regulated firms, does not cover poor investment performance. Try the FSCS investment protection checker at https://www.fscs.org.uk/check/investment-protection-checker/.
    • Protection from the Financial Ombudsman Service (FOS) does not cover poor investment performance. If you have a complaint against an FCA-regulated firm, FOS may be able to consider it. Learn more about FOS protection at https://www.financial-ombudsman.org.uk/consumers.
  3. You won’t get your money back quickly
    • Even if the business you invest in is successful, it may take several years to get your money back. You are unlikely to be able to sell your investment early.
    • The most likely way to get your money back is if the business is bought by another business or your shares are sold on the Alternative Investment Market. The latter can only occur if there is a willing buyer.
    • If you are investing in a start-up or EIS qualifying business, you should not expect to get your money back through dividends. Such businesses rarely pay these.
  4. Don’t put all your eggs in one basket
    • Putting all your money into a single business or type of investment for example, is risky. Spreading your money across different investments makes you less dependent on any one to do well.
    • A good rule of thumb is not to invest more than 10% of your money in high-risk investments. (See https://www.fca.org.uk/investsmart/5-questions-ask-you-invest).
  5. The value of your investment can be reduced
    • The percentage of the business that you own will decrease if the business issues more shares. This could mean that the value of your investment reduces, depending on how much the business grows. Most start-up businesses issue multiple rounds of shares.
    • These new shares could have additional rights that your shares don’t have, such as the right to receive a fixed dividend, which could further reduce your chances of getting a return on your investment.

If you are interested in learning more about how to protect yourself, visit the FCA’s website at www.fca.org.uk/investsmart

Application Form Request – Seneca AIM EIS Fund


Application Form Request – Seneca EIS Portfolio Service


Risk summary

(Estimated reading time: 2 minutes)

Due to the potential for losses, the Financial Conduct Authority (“FCA”) considers this investment to be high risk.

What are the key risks?

  1. You could lose all the money you invest
    • If a business you invest in fails, you are likely to lose 100% of the money you invested in that business. Most start-up businesses fail. Please see page 10 of the Information Memorandum for an overview of the types of businesses this fund invests in.
  2. You are unlikely to be protected if something goes wrong
    • Protection from the Financial Services Compensation Scheme (FSCS), in relation to claims against failed regulated firms, does not cover poor investment performance. Try the FSCS investment protection checker at https://www.fscs.org.uk/check/investment-protection-checker/.
    • Protection from the Financial Ombudsman Service (FOS) does not cover poor investment performance. If you have a complaint against an FCA-regulated firm, FOS may be able to consider it. Learn more about FOS protection at https://www.financial-ombudsman.org.uk/consumers.
  3. You won’t get your money back quickly
    • Even if the business you invest in is successful, it may take several years to get your money back. You are unlikely to be able to sell your investment early.
    • For companies whose shares are not listed on any exchange (‘unquoted’ or ‘private’ companies), the most likely way to get your money back is if the business is bought by another business or lists its shares on an exchange such as the London Stock Exchange. These events are not common.
    • For companies whose shares are listed on an exchange (such as the AQSE or AIM), the most likely way to get your money back is if the business is bought by another business or your shares are sold on that exchange. The latter can only occur if there is a willing buyer.
    • If you are investing in a start-up or EIS qualifying business, you should not expect to get your money back through dividends. Such businesses rarely pay these.
  4. Don’t put all your eggs in one basket
    • Putting all your money into a single business or type of investment for example, is risky. Spreading your money across different investments makes you less dependent on any one to do well.
    • A good rule of thumb is not to invest more than 10% of your money in high-risk investments. (See https://www.fca.org.uk/investsmart/5-questions-ask-you-invest).
  5. The value of your investment can be reduced
    • The percentage of the business that you own will decrease if the business issues more shares. This could mean that the value of your investment reduces, depending on how much the business grows. Most start-up businesses issue multiple rounds of shares.
    • These new shares could have additional rights that your shares don’t have, such as the right to receive a fixed dividend, which could further reduce your chances of getting a return on your investment.

If you are interested in learning more about how to protect yourself, visit the FCA’s website at www.fca.org.uk/investsmart

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