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Quicker rewards from enterprise

Venture capital trusts and enterprise investment schemes have been given a boost in a bid to make them more attractive to investors by cutting the minimum holding period.

Tax reliefs available via VCTs and EISs are on condition that the investor remains the beneficial owner of the shares for five years.

But the minimum holding period to qualify for income tax relief has now been reduced to three years.

The industry has welcomed the news and says it should broaden the appeal of the schemes, which have already increased in popularity in the last few years.

Matrix Securities product development director Bridget Cleverly says: &#34It came as a surprise but the move makes them more attractive because investors are locked in for a shorter period.&#34

Other changes to the schemes include safeguarding VCT investors&#39 tax

reliefs where a company which the VCT has invested in is sold, merges or undergoes a capital reconstruction and the VCT receives shares rather than cash.

Murray Johnstone VCT fund manager John Simpson says: &#34The changes will broaden their appeal in the first instance although investors should not lose sight that investments are for the long term. But there are also a number of changes to their operational side which we have lobbied for and it is pleasing to see the Treasury has listened to the industry&#39s representations.&#34


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An extra £50 discount for small employers paying Working Families&#39 Tax Credit and Disabled Person&#39s Tax Credit to their employees has been announced in the Budget. Small employers with tax credit cases in 2000/2001 who file their PAYE end of year returns over the Internet and pay any tax due electronically will receive the discount. […]

Benchmark plan puts Cat among the pigeons

Lenders and brokers are being left in the dark over the extent of Government plans for mortgage regulation.The industry is bracing itself for more confusion and uncertainty after the Chancellor failed to endorse former telecoms regulator Don Cruickshank&#39s proposals for &#34benchmarked&#34 mortgages published this week.In his Budget speech, Brown accepted the report&#39s recommendation to encourage […]

Technology tax break will get IFAs online

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The Portman expelled plan Ombudsman appeal

Five hundred carpetbaggers expelled by the Portman Building Society may soon be able to appeal to the Building Society OmbudsmanThe aggrieved former members were expelled from the society in January after campaigning for the Portman to demutualise.The expelled members were offered just £50 compensation for their inconvenience. They have been going through Portman&#39s internal complaints […]


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