VCT investor numbers jump 32%
The number of investors claiming tax relief on a Venture Capital Trust (VCT) investment in 2021/22 rose by 32% (year-on-year) to 25,800, a new report says.
Total investments on which the tax relief was claimed rose by 61% to £1.04bn, according to the data from HMRC.
The average amount invested was £40,000.
However, the tax reliefs claimed were dominated by higher value investors. Those investing between £150,000 and £200,000 accounted for just 6.7% of all VCT investors, but 32.2% of all funds raised.
Nicholas Hyett, investment manager at Wealth Club, called for a rise to the £200,000 a year limit on VCT investments, claiming that raising the cap would lead to a boost in funding for UK small businesses.
He said: “There are signs the £200,000 a year limit on VCT investments, unchanged for nearly 20 years, is capping the funding available to small businesses.
"The largest VCT investors, those investing £150,000 to £200,000 a year, account for just 6.7% of investors, but 32.2% of funds raised. Almost all are hitting the £200,000 a year maximum – and would potentially invest more if the scheme allowed, unlocking significant further funding for small UK businesses.
“With economic growth and support for smaller companies a key priority for both political parties, the £200,000 limit is overdue a review.”
Venture Capital Trusts featured among the top sectors by net demand in the final quarter of the year, according to 2021 data from the Association of Investment Companies.
From Financial Planning Jobs. For more click on any job.
-
Financial Planner - home based/UK wide - £60k+
Financial Planning Jobs Read more... -
Financial Adviser - London/South East - To £70k
Financial Planning Jobs Read more... -
Senior Financial Adviser - £65k-£75k - Bucks
Financial Planning Jobs Read more...
This is a selection of jobs from our new Financial Planning Jobs site - for more job vacancies click on any job or the link below.
Financial Planning Jobs https://jobs.financialplanningtoday.co.uk/