Tax-efficient investing – a calendar for advisers
- On October 12, 2023
- By GrowthInvest Marketing
Advisers often ask what they should be thinking about at different times of the year when it comes to investing in tax-efficient vehicles such as VCT, EIS or IHT products, writes Jack Rose, head of sales at Triple Point.
Although timings will always be driven by the client’s needs, there is a certain ebb and flow to each year that has allowed us to create a calendar as a guide for advisers.
This article outlines what and when advisers could look at certain things to steer clear of the inevitable rush of activity that usually comes as the end of the tax year approaches.
The calendar has started from Q4 due to where we are in the year.
Q4 (October – December)
During Q4, fundraising for VCTs will be in full swing with the majority of offers either open or with launch dates finalised.
Indeed, the start of the VCT ‘season’ has been getting earlier and earlier for the past few years with at least 14 offers open before the end of September.
These offers provide over £570m of capacity for investors, with at least another five VCTs still to open. Some VCTs may have announced dividends, allowing you to invest before their ex-dividend date. This option means clients might receive a dividend within five months of investing, a shorter wait compared to the typical year or more (depending on a VCT’s dividend policy).
From a fee perspective, it is also often the best time to invest. Many VCTs offer early bird and existing shareholder discounts at the start of their offers, helping to reduce any initial fees.
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