Better Business: The pensions alternative

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 ...