Is the government stifling the tax-advantaged sectors?

Changes to tax rules made in last year's Budget

clock • 1 min read

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 for free

  • 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
member?

Login

More on VCTs/EIS

Amati AIM VCT faces strategic review as performance issues mount

Amati AIM VCT faces strategic review as performance issues mount

Potential expansion of investment remit

James Baxter-Derrington
clock 14 March 2024 • 1 min read
Fuel Ventures VCT launches debut £50m fundraise

Fuel Ventures VCT launches debut £50m fundraise

Led by MyVoucherCodes founder

clock 25 January 2024 • 1 min read
Defaqto unveils new ratings for AIM and unlisted BR services

Defaqto unveils new ratings for AIM and unlisted BR services

Following MICAP acquisition

Sahar Nazir
clock 22 January 2024 • 2 min read
Trustpilot