VCT funds raised for the tax year 2006-2007 have fallen to just over a third of the amount raised the year before, according to research by Allenbridge Group.
The total for the tax year 2006-2007 is £269.32m, a huge drop from £790.4m in 2005-2006. The Budget changes to the VCT rules account for the drop in funds this year, with the Chancellor reducing the income tax break on VCTs from 40pc to 30pc and increasing the holding period from three to five years, said Ewoud Karelse, VCT and EIS analyst at Allenbridge. He added: “We did predict that the total raised for this tax year would be around £250m.” The sector breakdown this year showed the generalist area took 69pc of the market, specialist 19pc, with the AIM sector trailing at 12pc. ...
To continue reading this article...
Join Professional Adviser for free
Signup and gain exclusive members-only insights
- 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
