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...
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