Investors in venture capital trusts will receive just 30% income tax relief under new terms issued today by the Treasury.
Current arrangements for tax relief in the VCT had been due to expire this year, but scant details just issued by Brown suggest the eligibility for investment will continue, albeit the tax relief to be earned will now be less than the current level of 40% income tax relief.
According to Brown, this will allow "twice as many people" to be eligible for investment.
It had been feared the income tax relief would be cut to 20% or scrapped altogether.
(Further details to follow once documents are published after the speech.)IFAonline
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