Despite cuts VCT role is still important

tax efficient vehicles

Despite the cut in income tax relief VCTs still have an important role to play in portfolios of various sizes and are an effective way to build up retirement savings

VCTs can occupy a valuable portion of many clients' portfolios so long as a number of fundamentals are followed. There are few tax incentives left available to investors. Legislation has steadily snipped away at incentives to save, lowering limits on the cash held in Peps and Isas, and capping the amount of money that can be held in a pension while means testing is used. It therefore came as a surprise to many when the Chancellor Gordon Brown reinvigorated VCTs just over two years ago. His 40% income tax relief transformed them from a mishmash of excellent and terrible performance with huge...