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EIS and VCT schemes successful in boosting companies

Enterprise Investment Schemes and Venture Capital Trusts have largely met their objectives since their introduction, according to a report commissioned by the Inland Revenue as part of this week&#39s Budget.
The study by the Public and Corporate Economic Consultants found that the EIS and VCT schemes – introduced in 1994 and 1995 respectively – have provided investors with reasonable rates of return as well as front end income tax relief.
Though the study found some disgruntled investors, especially with EIS schemes, more than two-thirds said they would consider making the same investment again.
The study also found the schemes met their objectives in terms of boosting the growth of the companies in which they invest. Almost half of EIS companies and nearly 40 per cent of VCT firms said the schemes enabled them to attract investors or fund managers who provided them with business advice and expertise.
The report says: “Despite the differences between the schemes in terms of the ways firms used the finance raised, the effect of the VCT scheme on company performance was not greatly different from the effect of the EIS.”
Hargreaves Lansdown investment manager Ben Yearsley says: “It&#39s good news. Maybe this could go some way towards widening the markets and getting IFAs interested.”


HSBC and Zurich give investors bite of FTSE cherry

HSBC and Zurich have both established capital-protected bonds that could mature earlier than the investment term if the FTSE 100 index reaches a certain level at specified points. Both products return investors&#39 original capital regardless of the index performance. HSBC&#39s capital and growth plan has a six-year term but could mature in year three. The […]


Despite the publication (in August 2002) of a consultative document on corporation tax reform – including such issues as the taxation of unrealised capital gains and the removal of capital allowances (in the interest of aligning accounting and tax practice) no changes to corporation tax were announced so the rates we are working with for […]

Macho in Machu?

Artemis Fund Managers MD Dick Turpin, Societe Generale Unit Trusts chief executive John Ions and Quill director Gordon Puckey are all set to trek the Inca trail in Peru to raise money for leukaemia charity the Anthony Nolan Trust.The Diary would like to wish the trio the best of luck keeping up with the rest […]

Half of IFAs risking employee litigation

Nearly half of IFAs are risking employee litigation with 47 per cent admitting they don&#39t fully comply with all aspects of employment law according to a survey by law firm Peninsula. The survey showed more than half of those surveyed, 54 per cent, were taking short cuts and only 34 percent were aware of new […]

The curse of long-term cash

Trevor Greetham, Head of Multi Asset at Royal London Asset Management, reveals why clients should be seriously concerned when short-term holdings of cash turn into a long-term investment. There is nothing wrong with holding wealth in the form of cash on a short-term basis. For many people capital stability is important and access to ready cash […]


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