Client interest in VCTs expected to rise as pension cap bites - research

Carmen Reichman
clock

Advisers expect their clients to become more interested in investing in Venture Capital Trusts (VCT) as they seek to make up for a reduced pension allowance and take advantage of tax-free dividends, a survey suggests.

Almost a third of advisers questioned in a survey commissioned by venture capital firm Albion Ventures, said they believed client interest in VCTs would increase over the coming tax year, compared with 3% who thought it would decrease. The clients' biggest reasons for wanting to invest in the tax efficient funds, the survey found, were they have maximised their ISA contributions, the ability to generate tax free dividends, and the new limits on pension contributions, which will see the total amount that savers can keep in their pension reduced from £1.5m to £1.25m. The Chancellor anno...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Equities

Partner Insight: Are equities really overvalued?

Partner Insight: Are equities really overvalued?

Value dispersion means there are plenty of cheap opportunities

Gareth Jones
clock 09 February 2024 • 1 min read
Partner Insight: How much value is there in UK equities?

Partner Insight: How much value is there in UK equities?

‘As different as they are attractive’

The UK Equities Team at Invesco
clock 07 February 2024 • 1 min read
Partner Insight: The shift to value - still on course?

Partner Insight: The shift to value - still on course?

The tailwinds remain for value investing

Gareth Jones
clock 06 February 2024 • 1 min read