Budget: Blow to VCTs and EISs

In his Budget announcement, Chancellor Gordon Brown slashed investment limits on VCTs to a maximum of £2m in any year from its current limit of £8m of gross asset levels. The change takes effect on April 6, 2007. It is the second consecutive four-fold drop in the limit from £16m just over a year ago. The reduction brings UK VCT firms in line with their counterparts across the EU but could have a negative knock-on effect on investments. The cut back will, according to Chris Powell, investment specialist at Arc Fund Management, mean profits and volatility levels could be hit as VCT...