View more on these topics

VCT nominee change opens platform opportunities

Venture capital trusts could soon be available through investment platforms after the Government announced changes to allow VCT shares to be bought through nominees.

As part of Chancellor George Osborne’s Autumn Statement, the Government is moving to open up VCTs to a variety of retail investors.

Octopus Investments VCT business line manager Mike Piddock says: “This is a big step forward in facilitating the purchase of new VCT shares through platforms – great for advisers and their investors. We have already entered into discussions with a number of platforms in anticipation of this.”

He believes there is a good chance that VCTs will be available on platforms sometime in the 2014-2015 tax year.

Meanwhile, from April the Treasury will deny tax reliefs for investors taking part in enhanced share buybacks, which allow investors to trigger another five years’ tax breaks.

Investors will also have to wait six months before re-investing in the same VCT if they want to receive the income, capital gains and tax-free dividends on offer.

Bestinvest managing director of business development Jason Hollands says: “After firing a warning shot in the Budget, the Government has confirmed that from April new rules will prevent VCTs from engaging in enhanced share buybacks.”

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment

    Close

    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm

    Email: customerservices@moneymarketing.com