Don’t invest unless you’re prepared to lose all your money invested. This is a high risk investment. You could lose all the money you invest and are unlikely to be protected if something goes wrong. Take 2 mins to learn more.

Invest in ZEPS

Investing in the Zenzic Estate Planning Service is straightforward

The process is designed to ensure the Service is suitable for your needs and that you understand the benefits and risks of investing in Business Relief qualifying strategies

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Investment Options

ZEPS offers you the opportunity to select from two distinct investment strategies (‘Income’ or ‘Growth’) or to create a bespoke combination of both (‘Blended’). Your financial adviser will be able to advise you on the most suitable strategy to meet your needs. The ZEPS minimum subscription is £25,000 after any initial Financial Adviser fees, with a minimum investment per strategy of £5,000.  

  • Growth Strategy

If you are looking purely for capital growth, the Growth Strategy offers a target return of 5-6% per annum over the medium-to-long-term.  Returns will be accumulated during the lifetime of your investment and reinvested, rather than paid out as income. 

  • Income Strategy

If you are looking for income, the Income Strategy offers a target return of 5-6% per annum, over the medium to long term. Returns will be calculated and paid out quarterly. Ad hoc withdrawals of capital may be possible (but not guaranteed).

  • Blended Strategy

For those who are looking for both income and capital growth, you can select a blend of the ‘Income’ and ‘Growth’ strategies.  You are able to create a bespoke portfolio strategy that is most suitable for your age, health and financial situation.  This blend can be changed over time to reflect your changing needs or circumstances.

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  • B
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  • D
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  • F
  • G

Investment Allocation

  • Growth Strategy
  • Income Strategy

Making an Investment

Step by Step

1. APPLY

You need to review the Investment Memorandum and Investment Management Agreement, then complete an Application Form (and suitability questionnaire where applicable).

2. ACCOUNT APPROVAL

Once the ZEPS DFM has reviewed the details of your application and approved you for the Service, you can make a payment by cheque or bank transfer, using the details on the application form.

3. FUNDS ARE INVESTED

Your subscription, less any initial fees (if applicable), will be invested into one or more Direct Lending Companies. This usually happens within one month. You will receive a contract note from the appointed Custodian confirming the details of the investment.

4. VALUATIONS & WITHDRAWALS

Throughout the investment period, we will send you updated valuations of your investment upon request, together with a bi-annual investor statement showing any movements on your account. You may request ad hoc withdrawals at any time (subject to withdrawal conditions).

Who can apply?

ZEPS Guides

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Risks

This summary is designed to help investors understand the principal risks associated with investments through ZEPS. It is important that
investors fully understand these risks and we encourage you to consider them carefully before making any investment decisions.

If you would like more information or detail about any of the risks, please contact your financial adviser.

Risk to Capital

The value of an investment through ZEPS may go down as well as up and investors may not get back the amount they originally invested. Investors should not consider investing unless they are able to bear the associated financial risks involved in investing through ZEPS. Investors should not consider investing unless they already have a diversified portfolio.

Each Direct Lending Company will seek to conduct its business so as to ensure, so far as possible, that it is always regarded by HMRC as constituting the trade of money-lending so that investors may obtain Business Relief in respect of their investments which are made through ZEPS, and to this end, whilst not determinative of the issue, all loans will be made on commercial terms comparable to the terms offered by other money-lenders, including banks. As the precise distinction between the activities of a money-lender and investment business are unclear and as interpretations of the law by HMRC can vary according to the particular facts of each case there can be no guarantee that HMRC will always regard investments in a Direct Lending Company as qualifying or continuing to qualify for Business Relief. Therefore, as a general policy, Zenzic Capital and the boards of the Direct Lending Companies will always give priority to making commercial decisions based upon sound business reasons around the need to maximise the security and value of a portfolio of loans rather than seeking to make or churn loans with the primary objective of ensuring that Business Relief may be available for Investors.

Nor can any assurance be given that even if HMRC were to treat the activities of a Direct Lending Company as constituting a trading business that HMRC will grant Business Relief on the full amount of each investment in a Direct Lending Company. For example, if HMRC were to regard cash held by a Direct Lending Company as being in excess of its needs for working capital and liquidity requirements, Business Relief otherwise available may be restricted proportionately to so much of an Investor’s interest in the business as is not regarded as in excess of such needs.

Investors in ZEPS should be aware that there is no guarantee that the investments will achieve their return expectations or targets. Prospective investors should be aware that past performance is not a guide to future performance and that any statements made in relation to expected performance are projections rather than guarantees. If Real Estate Companies which receive loans from the Direct Lending Companies fail to pay interest repayments or pay back the loan to the Direct Lending Companies, the value of shares in the Direct Lending Companies would be materially affected. If companies engaged in the development, construction or refurbishment of properties (the “Real Estate Companies”) which receive loans from the Direct Lending Companies, fail to meet their interest or principal repayment obligations, the value of shares in the Direct Lending Companies may be materially adversely affected. A strong pipeline of new lending opportunities for the Direct lending Companies is an important part of generating enough revenue to cover their general overheads and other costs and to generate the anticipated returns. The Direct Lending Companies will be reliant on Zenzic Capital to ensure a strong pipeline.

The performance of the Direct Lending Companies in which the ZEPS DFM arranges investments is dependent upon a number of factors which include the quality of their customer bases and their respective revenue streams, the strength of management and controls, and the value of any assets held as security. Both specific and general circumstances can adversely affect customers’ abilities or willingness to meet their obligations. Businesses may also be affected by competition, interest rates, inflation, employment rates, COVID, Brexit, and other macroeconomic factors over which the ZEPS DFM has no control. There is therefore a possibility that one or more of the holdings into which investments are arranged may underperform and cause a loss of value for investors.

Investments may be arranged into a single Direct Lending Company. This limited diversification could increase the risk for investors. It should be noted that while investors may only receive shares issued by one Direct Lending Company, that investment may be secured against a diversified portfolio of three or more real estate projects (although this cannot be guaranteed).

It is important that investors understand they may not be able to liquidate investments early. Investors can request an early repayment of capital but the ZEPS DFM may not be able to meet such a request. Investors should bear this in mind when deciding the amount they are happy to invest. Partial repayments of capital may also not be possible or permitted. The underlying assets of the Direct Lending Companies are also highly illiquid, which may mean that it could take a substantial amount of time for investments to be liquidated.

Zenzic Capital and the ZEPS DFM are each dependent on certain key individuals and on their business and financial skills. The success of ZEPS will primarily depend upon the ongoing ability of Zenzic Capital to identify, source, select, finance, and monitor appropriate investments.

Small to medium enterprises (“SMEs”) are on average more risky counterparties than larger companies as they may be less prepared for the economic factors (such as interest rate changes, inflation, impact of COVID, effects of Brexit, political and regulatory changes, economic uncertainties etc.) and company-specific risks which they face.

The Real Estate Companies to which Direct Lending Companies make loans are subject to UK-based economic risk. If there are adverse changes in the market or in the macro-economy, this could cause the Direct Lending Companies to generate less income than expected which could in turn impact their ability to make payments to investors. This may also impact the recoverability of loans made to the Real Estate Companies and the ability of Direct Lending Companies to return investors’ capital.

Details of the Real Estate Companies to which loans are made may not be disclosed on a named or detailed basis to investors because of confidentiality and other restrictions. To this extent, investors may not, therefore, have an opportunity to evaluate for themselves such Real Estate Companies and, therefore, investors will be dependent upon the judgement and ability of the Direct Lending Companies and Zenzic Capital in deciding which businesses to deal with.

Two types of FSCS protection are relevant to investors: deposits and investments.

Deposit protection applies when money belonging to investors is held in the client account. This occurs initially when investor money is transferred to the ZEPS Administrator to make an investment and when interest repayments or dividends and repayments of capital are being held on behalf of investors. While the money is in a client account (which is likely to be a short period) it is protected by the FSCS deposit protection which is currently £120,000 per person per eligible claim. This client account is operated by Woodside Corporate Services Limited, the initial custodian appointed by the ZEPS DFM under the direction of the ZEPS DFM and is held with the Royal Bank of Scotland.

Investors may also be entitled to investment protection in cases where loss is incurred by factors such as investments in ZEPS being mis-sold or misrepresented. The FSCS investment protection is currently up to £120,000 per person per eligible claim.

The shares issued by Direct Lending Companies are not protected by the FSCS. Accordingly, neither the FSCS nor anyone else will pay an investor compensation upon the failure of a Direct Lending Company. If a Direct Lending Company goes out of business or becomes insolvent, you may lose all or part of your investment. Individuals approaching retirement and considering options under the new pension freedoms should recognise that an investment in the shares of a Direct Lending Company is a much higher-risk alternative to buying an annuity. Individuals in retirement, who may have significant sums in savings and may be concerned about low interest rates and are tempted to invest may be taking an inappropriate level of risk with their money. It should be noted that an investment in ZEPS should be made in the context of a wider portfolio of investments with sufficient assets in readily realisable investments to cover any anticipated liabilities. If you remain in doubt whether an investment is appropriate for you, you should contact your IFA.

Who can apply?

You should only apply if your financial adviser has certified that:

  • participation in ZEPS meets your objectives;
  • you have the expertise, experience, and knowledge to understand the risks; and
  • you are able to bear the associated risks of an investment in ZEPS.

Financial advice, assessment and customer due diligence procedures

You must arrange for a financial adviser authorised by the FCA to carry out:

(i) a suitability assessment in accordance with COBS 9 (“Code of Business Source Book 9”) to ensure that you have the requisite knowledge and experience to participate in ZEPS, and that it meets, and is suitable for, your needs in light of your financial situation and investment objectives; and
(ii) Your financial adviser has completed all Financial Adviser Declaration pages within the Application Form which covers the verification of identity, suitability and initial fees.

A Quick Guide to: Inheritance Tax

Understanding Inheritance Tax
Inheritance tax (“IHT”) affects far more families than many people expect. With the main nil-rate band frozen at £325,000 since 2009, and property prices rising steadily, a growing number of estates now face a tax liability.

How IHT works
Assets above the nil-rate band of £325,000 are generally taxed at 40% on death. For married couples and civil partners, any unused nil-rate band can be transferred to the surviving spouse, potentially doubling the threshold to £650,000 on the second death.

Homeowners may also benefit from the residence nil-rate band (“RNRB”), which currently adds up to £175,000 per person where a main residence is left to direct descendants. Combined with the standard nil-rate band, this means some couples can pass on up to £1 million free of IHT. However, the RNRB tapers away for estates valued above £2 million, so larger estates may not benefit in full.

Common planning strategies
Many families look to reduce their IHT liability by using gifts or trusts. Outright gifts can be effective, but to become fully exempt the donor must survive seven years and even then, the relief is graduated rather than immediate, with taper relief applying from year three onwards. Trusts can offer more control but add legal complexity and cost that some would rather avoid.

These approaches also share a common limitation: once assets are given away, the original owner loses access to them.

Business Relief and ZEPS
Business Relief (“BR”) is a long-standing provision in UK legislation that can reduce the value of qualifying assets for IHT purposes. Where BR applies, the taxable value of those assets may be reduced, in certain scenarios to nil, provided they have been held for at least two years and are still held at the time of death.

ZEPS invests in BR-qualifying assets, with the aim of helping investors reduce the chargeable value of their estate after a two-year qualifying period. Because investors retain ownership of their capital throughout, this approach differs from gifting strategies in one important respect: the investor does not have to give anything away to potentially benefit.

This means investors can, subject to qualifying conditions:

  • Retain ownership and access to their capital
  • Work towards reducing the IHT-chargeable value of their estate
  • Do so without the seven-year wait associated with outright gifts

A note on tax and advice
Tax rules are subject to change, and the value of BR relief depends on individual circumstances, the nature of the underlying investments, and whether qualifying conditions continue to be met. IHT planning is not one-size-fits-all. We encourage anyone considering their options to take independent financial or legal advice from a qualified adviser.

A Quick Guide to: Business Relief

Business Relief (“BR”) was first brought into Inheritance Tax legislation in 1976. At that time, its primary objective was to ensure that family-owned businesses could continue operating as viable trading entities after the owner/s had passed away, without the need for them to be sold, broken up or refinanced in order to satisfy an inheritance tax obligation. Over time, successive UK governments have grown to value the importance of encouraging people to invest in such trading companies, whether or not they are running the company themselves.

BR has become an established tax relief for more than 40 years.  The 2024 Autumn Budget introduced changes to IHT relief regarding BR-qualifying assets, including shares held in BR-qualifying companies, that came into effect from 6 April 2026. Under the new rules the first £2.5 million of BR-qualifying assets per individual, that are held for at least two years (and at the point of death), continue to attract full IHT relief. Any excess over £2.5 million attracts a reduced rate of relief of 50% (i.e. an effective IHT rate of 20%).

BR-qualifying shares in companies that are quoted on AIM that are held for at least two years (and at the point of death) benefit from a reduced rate of relief of 50% of the IHT 40% rate (i.e. an effective IHT rate of 20%).

Investors should be mindful that investments in trading companies can go down as well as up and investors may not get their initial investment back. It’s worth noting that the availability and/or advantages of Business Relief may vary over time as it is subject to review and amendment by the UK Government. As such, it’s important to regularly review the current rules and regulations surrounding Business Relief to ensure that it remains a viable option for reducing a potential IHT liability as the value of tax relief depends on your individual circumstances.

What qualifies for Business Relief?

You can get 100% Business Relief on the first £2.5 million of BR-qualifying assets per individual through:

  • A business or interest in a business
  • Shares in an unquoted company

Note: The company must be a trading company, not an investment company.

At the time of death, the investor must have owned the shares for at least two years.

 

A Quick Guide to: Probate

Probate is the legal process that follows someone’s death. It establishes who has legal authority to administer the estate and ensures that assets are distributed correctly. In practice, this means identifying assets and debts, valuing the estate, settling outstanding liabilities and taxes, and distributing what remains to beneficiaries.

Where the deceased left a valid will, probate typically involves applying for a grant of probate, which gives the named executors formal authority to act. Where there is no will, a grant of letters of administration is required instead, and the estate passes according to the statutory intestacy rules, a fixed legal order of priority that may differ from any informal wishes the deceased expressed during their lifetime.

Some estates are straightforward and resolve within six to twelve months. Others, particularly those involving property, business assets, or complex tax positions, can take considerably longer.

Probate and grieving families

Although probate is primarily an administrative process, it almost always falls during a period of grief. The responsibilities involved can feel overwhelming, and the timescales involved are often longer than families expect. Understanding what lies ahead and knowing where to get help can make a meaningful difference.

How ZEPS can help

For families dealing with a ZEPS investment as part of an estate, we provide practical support at each stage of the process.

  • Probate support: We help families understand the administrative steps involved in managing the deceased's Business Relief ("BR") investments, and what to expect throughout the process.
  • Investment transfers: We support the correct and orderly transfer of ZEPS investments to beneficiaries, working within the requirements of the grant of probate or letters of administration.
  • Inheritance tax ("IHT") facilitation: Where appropriate, we can assist with IHT pre-payments during the probate period. This can protect the estate from being forced to sell assets to meet a tax liability before the estate is fully administered.

Where the complexity of an estate warrants it, we would always encourage families to take independent legal or tax advice from a qualified solicitor or adviser.