An increase in the launch of venture capital trusts (VCTs) in the UK following the new 40% income ta...
An increase in the launch of venture capital trusts (VCTs) in the UK following the new 40% income tax rebate could be risky for the market, according to Isis Asset Management.
Jason Hollands, director of communications and strategy at Isis, said: "It is important to reinforce the point that the current regime offering 40% tax relief is only a temporary two-year window offered by the Chancellor, which we are already a quarter of the way through."
"There is potential risk that if too many 'temporary visitors' to the VCT market raise very large sums of money over the next 18 months, they will end up chasing the same investment opportunities.
"This is a particular risk for VCTs investing primarily in IPOs on the alternative investment market."
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