John Davies: Will Covid-19 create a dividend dilemma for VCTs?

clock • 3 min read

No part of the economy has been left untouched by the coronavirus pandemic and VCT dividend payments are not immune, writes John Davies. However, he believes tax-advantaged capital has a role to play in the economic bounceback

Tax-free dividends have been a long-standing and fundamental attraction for VCT investors and generally have been well rewarded in recent years. However, with the economy in the grip of coronavirus, the full economic impact is yet to be revealed. In a year of mind-blowing but vital levels of financial support from the UK government, businesses have at least been able to access short term funding. As we head into Autumn, the job retention scheme appears set to end and businesses will need to work out how to deal with their government-funded loans that will eventually need to be repaid. ...

To continue reading this article...

Join Professional Adviser for free

  • 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

Join

 

Already a Professional Adviser member?

Login

More on Tax Planning

Partner Insight: Royal London's Fiona Hanrahan — 'Your top tax year end questions answered'

Partner Insight: Royal London's Fiona Hanrahan — 'Your top tax year end questions answered'

Fiona Hanrahan, Senior Intermediary Development and Technical Manager, Royal London
clock 08 February 2024 • 3 min read
Treasury collects £2bn in 12 weeks as IHT receipts continue to soar

Treasury collects £2bn in 12 weeks as IHT receipts continue to soar

Figure breaks down at £22m a day for the government’s coffers

Hope William-Smith
clock 21 July 2023 • 2 min read
Frozen tax thresholds bite as 55% more pay additional rate 

Frozen tax thresholds bite as 55% more pay additional rate 

Hundreds of thousands dragged into higher paying tax brackets 

Jenna Brown
clock 29 June 2023 • 3 min read