VCT – New Issues update
With Income Tax rates for the highest earners increasing to 50% from 6th April 2010 and tough new limits on pension contributions, investors are once again looking at Venture Capital Trusts (VCTs) as an attractive source of tax relief.
VCT fund managers have also seen an improvement in the range and quality of investments available to them, and are able to negotiate better investment terms from those smaller companies unable to access alternative sources of finance.
Bestinvest have researched every VCT launched since they began in 1995. During that time our enthusiasm has varied, depending on the level of tax reliefs and the quality of investments on offer.
As the end of the tax year approaches, some popular VCTs are close to filling their capacity and will not be accepting any further new contributions. At the same time, there are a number of new launches coming onto the market. It is therefore critical to keep up to date on what offers are available and which have closed to new monies.
We are updating our VCT website each day, where you can find details of availability, our views on each VCT and can download application forms. However, we strongly recommend calling us to check the current status of an issue before submitting your application form. Completed application forms (together with your cheque made payable to the VCT) need to be received by us no later than Friday 26th March in order to benefit from tax relief in this tax year.
If there is anything you wish to discuss regarding Venture Capital Trusts please call our Advisers on 020 7189 9970.
Please note: In our view, VCTs are not an appropriate investment for everyone. We would recommend that VCTs are only considered by experienced investors who are liable to higher rates of Income Tax, are willing and able to hold their investment over the longer-term and are comfortable with taking on a high level of risk.