Enterprise Zone Syndicate

Our client, Mr R, made a gross investment of £858,000 into an Enterprise Zone Syndicate which was an investment in commercial property.  The initial deposit was £369,334 which generated a tax refund of £308,362.  The net cost of making the investment was therefore £60,972. 

Following the seventh anniversary of the completion of the syndicate, a long leasehold was created out of the freehold on the property.  The long leasehold was then offered for sale following a majority vote by the syndicate and the leasehold was disposed of shortly afterwards.  Following the satisfaction of the mortgage on the property and all other costs, the amount available to be distributed to Mr R was approximately £363,962.  After taking into account the tax relief obtained on day one, this distribution represents a gain of £271,650 for Mr R.

THE FINANCIAL SERVICES AUTHORITY DOES NOT REGULATE ENTERPRISE ZONE SYNDICATES.