Concerns over risks of VCT investment

news ANALYSIS

Uncertainty over sustainability of tax breaks on VCTs could force investors into spare capacity in lower-quality vehicles

The financial services industry, like any retail sector, loves nothing better than a buy-while-stocks-last bonanza. But, signs that the Government will wait until April to tell the venture capital trust industry whether the existing tax breaks will continue are causing some concern. Those responsible for the marketing and selling of VCT shares are sensitive to anything that has the potential for mis-selling allegations. This caution has been heightened on the back of warnings from the FSA that it is investigating the marketing of VCTs, on the grounds those who cannot afford the risks of ...