The Finance Bill received Royal Assent today meaning investors can no longer benefit from tax-efficient schemes, including VCTs and EIS, investing in low-risk businesses.
The bill, which was originally set to receive Royal Assent on 8 March but was delayed by a week, will introduce a "risk-to-capital condition" that will stop investors taking advantage of tax breaks by investing in low-risk venture capital trusts (VCTs) and enterprise investment schemes (EIS) - they will only receive tax breaks by investing in higher-risk vehicles. Alex Davies, founder of Wealth Club, a broker that specialises in tax-efficient products for HNW clients, said: "At 11.05 today the Finance Bill received Royal Assent. This draws a curtain on lower-risk, asset and contract-bac...
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