London and Belfast-based property advisory firm Sapphire Capital Partners has launched an Enterprise Investment Scheme, Sapphire Building Services.

The new company will carry out smaller construction projects in the UK on a “cost plus” or fixed-fee basis. Returns will be derived predominantly through a realisation of profits from these projects.

Because of the EIS tax reliefs and benefits, the company is targeting qualifying high net worth clients of accountants, financial intermediaries and solicitors.

The minimum investment is £25,000 (about $37,500) per investor. The maximum total subscription for the EIS is £1.5 million.

The company is aiming for a minimum return of £1.05 for each £1 invested before tax reliefs, which would deliver an investor (net of tax) return of 10.7 per cent per annum. This equates to a gross tax equivalent return of 19.4 per cent per annum to a 45 per cent taxpayer.

The EIS tax incentives include 30 per cent upfront income tax relief on the amount subscribed; 100 per cent inheritance tax after two years; capital gains tax deferral for the life of the investment; 100 per cent tax-free growth; the availability of business investment relief for certain UK-resident non-UK domiciled investors; and loss relief for any shares disposed of at a loss.