Better Business: The pensions alternative

clock

Patrick Reeve, managing partner of Albion Ventures, says VCTs have become the default tax planning investment for higher earners.

Venture Capital Trusts (VCTs) were created by the last Conservative Party Government back in 1995 as a method of channelling private investor money into smaller unquoted companies. Today’s versions are tax efficient, UK closed-end funds, listed on the main stock exchange, similar to investment trusts. VCTs’ popularity rests on their twin attractions of income tax relief and the potential for tax free income; these have now increased as recent legislation has made pensions less attractive. Assuming Gordon Brown does call the general election in May and loses, VCTs will once again come ...

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 VCTs / EIS

Why a 'wait and see' Budget approach could cost clients

Why a 'wait and see' Budget approach could cost clients

'Some of the most impactful changes to the tax landscape have already been announced'

Andrew Aldridge
clock 08 October 2025 • 4 min read
Why financial advisers need to embrace EIS or risk being left behind

Why financial advisers need to embrace EIS or risk being left behind

'Let's address the elephant in the room: yes, EIS investments are high-risk'

Andrew Aldridge
clock 22 September 2025 • 5 min read
Portfolio construction in 2025: The importance of diversification extends beyond asset classes

Portfolio construction in 2025: The importance of diversification extends beyond asset classes

Diversification must go beyond spreading investments across equities, bonds, and cash

Andrew Aldridge
clock 09 September 2025 • 4 min read