From 6 April 2026, the upfront income tax relief on new VCT subscriptions will fall from 30% to 20%, breaking a decades-old parity with EIS. Andrew Aldridge explains why advisers need to start thinking differently...
The Enterprise Investment Scheme (EIS) offers UK taxpayers some of the most generous tax reliefs on the planet. However, for years, venture capital trusts (VCT) have been the more comfortable choice for many advisers seeking to provide clients with tax efficiency. Being listed vehicles, being available on familiar platforms, push-button applications and integrated reporting made VCTs feel effortless. They offered a neat solution for clients seeking tax efficiency, and for advisers, they slotted seamlessly into established workflows. But the landscape is changing. From 6 April 2026,...
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
