Is the government stifling the tax-advantaged sectors?

Changes to tax rules made in last year's Budget

Is the government stifling the tax-advantaged sectors?

Recent changes to the rules governing the tax-advantaged sector have created more restrictions in terms of what VCT and EIS funds can invest in, however there is no sign of a retreat on the part of the UK government in regards to the concept of tax-advantaged investment, according to managers.

Indeed, the various reliefs related to VCTs, EIS, SEIS or IHT portfolio services, not only remain in place, but given the changes on pensions last year, these products are the only "tax-advantaged, legitimate, government-endorsed vehicles left in town" according to Mark Brownridge, research and development analyst at Mazars Financial Planning. David Stevenson, fund manager at AIM VCT manager Amati, agrees as he points out there is an interesting combination of events currently within the sector. "In one and the same Budget statement [last year], you had restrictions placed on other ta...

To continue reading this article...

Join Investment Week

  • Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
  • Get ahead of regulatory and technological changes affecting fund management
  • Important and breaking news stories selected by the editors delivered straight to your inbox each day
  • Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
  • Be the first to hear about our extensive events schedule and awards programmes

Join now


Already an Investment Week


More on VCTs/EIS

At the time of writing, the fund has raised in excess of £50m and made 44 investments of which 14 are follow-on investments.

Foresight reopens FW Technology EIS fund

Launches new prospectus

clock 14 June 2022 • 1 min read
Manager of Columbia Threadneedle UK Social Bond Simon Bond, who hands over fund management responsibilities at the end of the month.

Square Mile downgrades Columbia Threadneedle UK Social Bond on Simon Bond's departure

Somerset GEM loses rating

Melanie Boulton
clock 08 June 2022 • 2 min read
Global Equity Income became the best-selling IA sector in April

ISA season boost reverses fund outflows

£553m inflows over April

Melanie Boulton
clock 06 June 2022 • 1 min read