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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.”

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