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AIC welcomes Treasury rethink on VCT limit

The Association of Investment Companies has backed the Treasury’s decision to postpone new limits on venture capital trusts’ investment capabilities.

Last week, the Treasury postponed a measure included in the Finance Bill that would have subjected VCTs, enterprise investment schemes and seed enterprise investment schemes to a £2m annual limit on the amount they could invest in a small business from April 6.

VCTs offer 30 per cent tax relief on investments of up to £200,000 a year as well as tax-free dividends and capital gains.

The move was designed to comply with European regulations and would have seen these vehicles lose their tax relief if they exceeded the limit.

The AIC raised concerns with the Treasury after it published the new limit in the Finance Bill last month. The AIC argued that the VCT sector was not given enough time to adapt to the change.

AIC director general Ian Sayers says the Government’s decision to postpone the limit shows it is committed to supporting the VCT sector.

The Government is pushing the European Commission to review the limit, which Sayers hopes will see it rise to £5m.

He says: “Such an increase is dependent on the approval of the European Commission. These negotiations are, by their nature, complicated and time-consuming. Nevertheless, we are confident that the Government is committed to this process and we very much hope this increase can be achieved.”

Hargreaves Lansdown investment manager Ben Yearsley: “Hopefully, the level is raised to £5m to benefit smaller businesses.



IMF: UK faces £750bn pensions time bomb

The International Monetary Fund has warned the UK it faces a £750bn pensions time bomb as life expectancy rates grow faster than expected. The IMF says governments and the financial sector have consistently understated how quickly lifespans will rise by around three years, a gap which could make public finances unsustainable. The Washington-based firm’s report […]

Swip cuts 23 roles in equities overhaul

Scottish Widows Investment Partnership is to cut 23 roles as part of move to reposition its £54 billion equities business. The asset manager is to focus on global and specialist active equities as well as quantitative equities. According to Swip, a number of smaller regional equity funds and smaller funds “no longer economically viable” will […]


HMRC cuts more than 400 Qrops from new register

HMRC has culled at least 435 QROPS schemes from its new register published yesterday. On top of the 309 fewer Guernsey based Qrops Money Marketing reported yesterday, the number of schemes available in Jersey fell from 138 to 64, a fall of 54 per cent. The number of Isle of Man registered Qrops fell from […]

In Focus Ebola cover - thumbnail

White paper — In Focus: Ebola Virus Disease

Jelf Employee Benefits focuses on Ebola Virus Disease (EVD) and what this means for businesses with operations in West Africa. This will be of particular interest to those with employees either travelling to, or living within, West Africa, the area affected by the most catastrophic outbreak of Ebola to date.


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