Three VCTs merge into one vehicle

Three VCTs are proposing to merge to create a more cost effective vehicle. Under the proposa...

Three VCTs are proposing to merge to create a more cost effective vehicle. Under the proposals, the £7m Pennine Downing Aim VCT and £5m Ethical Aim VCT will merge into the £9m Pennine Downing Aim VCT 2. The three are currently managed by Rathbone and if accepted, the merger will go ahead on 16 January. Following changes to VCT regulations in 2004, VCT’s can merge without prejudicing tax relief’s obtained by shareholders on their original investments.