An EZS is where members buy buildings in an industrial area deemed by the government as being in need of regeneration.
Normally, the syndicate member will put will pay around 40% of their share and then use limited recourse bank funding to finance the remaining 60%.
The syndicate member can reduce his tax liability for the current year in which the investment is made based on qualifying costs of between 90% and 98% of the purchase price.
The property can be disposed of after a minimum of seven years whereby the outstanding loan is repaid from the proceeds. If there is a surplus then it is returned to the syndicate members. Any shortfall is NOT funded by the syndicate members.
The reliefs end on the end of the 2010/11 tax year (i.e. 5th April 2011). So you will need to act quickly if you want to go down this route.
One company who invest in EZS is Chancery who can be contacted here.
http://www.truemanbrown.co.uk/
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