Tax break flatters VCT returns

clock

allenbridge data shows vcts struggling to compete with wider market without tax breaks

Generous tax breaks alone are helping generalist VCT managers compete with the wider market. Analysis of annualised returns by Allenbridge shows that, before tax breaks are factored in, the average private equity or generalist VCT launched between April 1995 and April 1997 produced an annualised return of 0.7% on NAV. This compares with returns of 5.4% from the FTSE All-Share over the same period. In fact, the figures on trusts launched up to the end of the 2002-03 tax year show that only those launched in 2000-01 have outperformed the main equity index. But when the 20% income tax brea...

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 Equities

Stock pickers urge caution over rapid return to US equities

Stock pickers urge caution over rapid return to US equities

Quilter and Fidelity

Linus Uhlig
clock 01 July 2025 • 1 min read
Deep Dive: US equities may not have peaked but do require greater selectivity

Deep Dive: US equities may not have peaked but do require greater selectivity

Amid equity rebalancing

Linus Uhlig
clock 13 June 2025 • 4 min read
Partner Insight: Robeco Emerging Markets Equities strategy - Targeting alpha in a new world of growth

Partner Insight: Robeco Emerging Markets Equities strategy - Targeting alpha in a new world of growth

Jan de Bruijn, Director, Emerging Market Equities, Robeco
clock 06 June 2025 • 5 min read
Trustpilot