As Prime Minister Rishi Sunak and Chancellor of the Exchequer Jeremy Hunt set a new course for the economy, little remains from the mini-Budget of their predecessors just a month ago.

But one announcement that escaped the axe is the expansion of investment schemes that can prove rewarding for investors.

Three types of investment that afford investors big tax breaks for supporting start-up businesses have been extended – and made more generous.

They are Venture Capital Trusts (VCTs), Enterprise Investment Schemes (EIS) and Seed Enterprise Investment Schemes (SEIS). All exist to encourage investors to support new companies and entrepreneurs.

In exchange for backing fledgling businesses, investors enjoy generous tax breaks, including lower income, capital gains and inheritance tax.

But as economist Milton Friedman once observed: ‘There ain’t no such thing as a free lunch.’ Attractive though the tax breaks are, the investments are high risk.

Used in the right way, they can generate huge rewards. And it is not just the ultra-wealthy who are able to benefit from them.

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