Budget changes will not result in the death of VCTs

tax efficient vehicles

Although the tax treatment of VCTs is not as generous as it used to be, and they have more restricted investment terms, good vehicles will still do well for longer-term investors

The recent Budget may not have been as bad for venture capital trusts (VCTs) as was feared, but do the trusts meet their original objectives? The last Budget, which could well be the penultimate one from Gordon Brown, had the potential to be a horror story for the VCT industry as speculation suggested he might put an end to the trusts completely. We felt confident he would not do that because the Treasury has accepted the contribution VCTs have made and will continue to make to the economy. The economic backdrop which VCTs operate in now is very different from the economy in which they wer...