Pru predicts EIS and VCT surge after MIP clampdown


High-net-worth clients on the hunt for tax efficient savings vehicles following the Budget clampdown on maximum investment plans (MIPs) are likely to turn to enterprise investment schemes (EIS) and venture capital trusts (VCTs), the Prudential has predicted.

Chancellor George Osborne announced earlier this month a new £300 monthly contribution limit on MIPs from April 2013. Matthew Stephens, head of product and sales technical at Prudential, said high earners had been using MIPs to shelter their income from tax since the annual allowance on pension contributions fell to £50,000 in April 2011. Providers had been pushing MIPs as a tax efficient vehicle in the run-up to the annual allowance cut with Legal & General launching a MIP in 2010. However, high-net-worth clients will now look for other tax efficient vehicles, Stephens said. "E...

To continue reading this article...

Join Investment Week

  • 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


More on VCTs/EIS