Spotlight: Tax Efficient Investing
The tightening of VCT investment criteria announced in the 2017 Budget was welcomed by the tax efficient sector, which had anticipated the government could cut back on relief. Instead, the ‘technical tinkering’ announced by Chancellor Philip Hammond largely re-emphasised the government’s growing support for the sector as a whole alongside its long-standing push towards growth focused, knowledge-intensive businesses, and away from lower risk, capital preservation schemes.
Challenges remain, on a smaller scale. The real definition of what exactly a high-growth ‘knowledge-intensive’ company remains open to interpretation. Meanwhile, VCTs raising money this year will need to be mindful of whether or not they can find a suitable home for it as new rules mean managers are under pressure to invest their money much quicker from April 2018.
Yet with restrictions on annual pension allowances likely to increase the sector’s popularity in 2018, it is impossible to be disappointed about the sense of pragmatism and encouragement the sector is finally receiving.
Download the PDF to read GrowthInvests Managing Director, Daniel Rodwell explain why more support and education is needed in order to help advisers make better use of opportunities in the tax efficient universe. Along with our Operations Director, David Lovell, sharing views on investment in the VCT Sector.
To view the entire publication, please click here.
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