Opportunities beyond traditional investments
Smart ways to grow and diversify your portfolio
At Finura, we want to ensure you’re not missing out. Sometimes sticking to the familiar can mean overlooking opportunities for greater growth, smarter diversification, or valuable tax benefits.
If you’ve ever wondered whether you could (or should) be doing more with your capital, you’re not alone. We believe small, strategic changes can make a big difference to your future. Reframing your approach to holding cash, considering early-stage venture investing, or exploring structured products could help accelerate your progress towards your financial goals.
We’ll help you look beyond the conventional and explore what else is possible - always in line with your risk appetite and values.
Cash can be king
While not strictly “alternative,” cash and gilts - UK government bonds that pay fixed interest over a set period - are often overlooked in financial planning.
It’s important to structure your cash holdings to minimise tax, secure the best possible interest rates, and ensure your funds are held with reputable counterparties. Gilts, in particular, can offer tax-efficient returns for higher-rate taxpayers and are a valuable tool for saving toward short-term tax liabilities.
We manage both cash and gilts with low administration costs, prioritising security and easy access. By taking a proactive approach, we help ensure these “safe” assets work harder for your overall financial plan.
Our approach includes:
Tax breaks for taking on risk
The UK government offers attractive tax reliefs to encourage investment in early-stage companies that drive innovation and growth. For those with the right risk appetite and capacity for loss, tax-advantaged investments – such as Venture Capital Trusts – can provide meaningful diversification and the potential to enhance your overall portfolio returns.
If you’re open to thinking beyond the mainstream, these opportunities could offer both growth and generous tax benefits, while supporting the next generation of UK businesses.
Venture Capital Trusts (VCTs)
Venture Capital Trusts (VCTs) are investment companies listed on the London Stock Exchange, created by the UK government to encourage investment in innovative, high-growth businesses. By pooling your capital with that of other investors, you gain access to a diversified portfolio of early-stage companies – typically those not available through mainstream funds.
VCTs are specifically designed for experienced investors with the right capital and a higher tolerance for risk. In return for supporting the next generation of UK businesses, you can benefit from attractive tax incentives:
- Up to 30% income tax relief on investments of up to £200,000 per tax year
- Tax-free dividends paid by the VCT
- No capital gains tax on disposals of VCT shares
- Opportunity for higher, long-term returns, alongside higher risks and less liquidity than listed shares
VCTs are a powerful way to diversify your portfolio, gain exposure to innovation, and potentially boost your returns – with some valuable tax advantages along the way. It is important to note that if sold before 5 years, the income tax relief is repayable to HMRC.
Enterprise Investment Scheme (EIS)
The Enterprise Investment Scheme (EIS) is a government initiative designed to encourage investment in innovative, early-stage UK companies by offering a range of generous tax incentives. By investing directly in individual businesses through EIS, you gain the opportunity to support entrepreneurial growth – and potentially benefit from attractive financial rewards.
EIS is particularly suited for experienced, growth-focused investors with a tolerance for higher risk. The key benefits include:
- 30% income tax relief on investments up to £1 million per tax year
- Capital Gains Tax (CGT) deferral on gains reinvested into EIS-eligible companies, plus exemption on growth
- Full Inheritance Tax (IHT) exemption after two years, subject to qualifying conditions
- Loss relief: offset losses against your income or capital gains for valuable downside protection
- High risk, high reward: EIS investments offer exciting growth potential, as well as some of the strongest tax advantages available for private investors
If you’re looking to back ambitious companies and are comfortable with risk, EIS can be a powerful tool in your growth and tax-planning strategy. It is important to note that if sold before 3 years, income tax relief is withdrawn and CGT exemption is lost.
Seed Enterprise Investment Scheme (SEIS)
The Seed Enterprise Investment Scheme (SEIS) is designed to encourage investment in the earliest-stage UK startups, offering some of the most generous tax incentives available. SEIS allows you to support new, high-potential businesses right from the start, helping drive innovation and entrepreneurship across the country.
SEIS is ideal for experienced investors seeking higher growth potential and comfortable with increased risk. The benefits include:
- 50% income tax relief on investments up to £200,000 per tax year
- Tax-free capital gains on growth from SEIS shares
- Capital Gains Tax (CGT) reinvestment relief—half of any capital gain reinvested in SEIS can be exempted
- Loss relief, helping to offset losses against your income or capital gains
- Eligible for full Inheritance Tax (IHT) exemption after two years
For those who want to back the next generation of UK businesses at their earliest stage – and make the most of attractive tax reliefs – SEIS can play a valuable role in a forward-thinking investment strategy. It is important to note that if sold before 3 years, reliefs can be withdrawn or clawed back by HMRC.
Business Relief (BR)
Business Relief (BR) is a valuable UK government provision that allows you to pass on certain business assets free from Inheritance Tax (IHT), making it a key tool for legacy and estate planning. Unlike a specific investment product, BR applies to qualifying business interests and some AIM-listed shares, enabling you to preserve family wealth across generations.
Key benefits include:
- Up to 100% Inheritance Tax (IHT) relief after holding qualifying assets for just two years
- Ability to preserve relief: if business assets are sold and reinvested in other qualifying assets within three years, the exemption can continue
- Commonly used to shield business assets or support legacy and succession strategies
- Applies to certain private companies, unlisted shares, and some Alternative Investment Markets (AIM) listed investments
If you’re looking to protect business interests or maximise the wealth you pass on, Business Relief can be an effective way to reduce IHT exposure while maintaining control over your assets.
Structured products
Structured products offer a flexible way to tailor your investments – balancing risk, reward, and protection. By blending traditional assets with derivative strategies, these investments can be designed to meet specific objectives or market conditions.
Key benefits include:
- Customisable risk and return profiles to suit your needs
- Capital protection features that can help safeguard your original investment
- Opportunities to participate in market growth, while limiting downside risk
- Well-suited for investors looking to navigate periods of market volatility
If you’re seeking more control over your investment outcomes or want protection from unpredictable markets, structured products can be a valuable addition to a diversified portfolio.
Are alternative investments right for you?
Alternative investments offer unique opportunities, tax benefits, and levels of risk. While these solutions can diversify your portfolio, enhance returns, and help you navigate volatility, they have distinct features and timelines that need careful consideration.
At Finura, we’re here to help you:
- Understand how each investment works, including the specific risks, rewards, and tax implications
- Assess suitability for your personal goals, time horizon, and risk appetite
- Integrate alternatives into a tax-efficient, well-rounded portfolio tailored to your needs
Whether you’re exploring new ways to grow capital, manage risk, or plan for the future, our team will guide you through every option – so your strategy is as forward-thinking and flexible as you are
VCT/EIS/SEIS’s invest in unquoted, growth-oriented companies that involve higher risk than more mainstream companies listed on the main London Stock Exchange and their performance tends to be more volatile. You may experience sudden and substantial falls in the value of your investment.
There is no guarantee that the qualifying status of the shares will be maintained. This could result in the loss of tax reliefs.
Shares in unquoted companies may be more volatile and can be hard to sell. An exit is only possible when each individual company is sold.
Past performance is not a guide to future performance and may not be repeated. The value of investments and the income from them may go down as well as up and investors may not get back the amount originally invested.
Tax treatment depends on the individual circumstances of each client and may be subject to change in the future. For guidance, seek professional advice. The Financial Conduct Authority does not regulate tax planning.