Advisers buck predictions and shun alternative tax-planning tools

The reduction in the life-time allowance and changes to the inheritance (IHT) regime are most often cited as reasons for increased investment into Enterprise Investment Schemes (EISs) and Venture Capital Trusts (VCTs). The lifetime allowance will reduce from £1.25m to £1m this April while the pensions freedoms introduced in April 2015 changed IHT rules so that savers could pass on more of their pension to children without incurring a tax charge of 40%. A recent report from Intelligent Partnership suggested these changes have meant advisers are turning to alternative investments while ...