Getting the most out of VCT investing

VCTs

Eliot Kaye, director at Puma Investments, takes a closer look at the advantages of planned exit VCTs.

Historically, venture capital trusts (VCTs) were an alternative asset class which many investors, especially those with a lower appetite for risk, steered clear of. However, with the annual pension allowance now reduced to £40,000 and a number of VCTs delivering attractive returns, the vehicles are starting to gain more prominence in many people’s portfolios, including as a useful supplement to a pension. As investors seek to invest as tax-efficiently as possible, those VCTs that pay out income (tax free, of course) are looking particularly attractive. In the tax year just ended, o...