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Why tax makes venture capital trusts an investment worth considering

05 April 2022 / Tim Parr
Issue: 4835 / Categories: Comment & Analysis
Tax ventures

Key points

  • Take investment advice from a suitably qualified source.
  • Venture capital trusts (VCTs) hold diversified investments meaning investment risk is reduced.
  • VCTs have tax advantages.
  • Companies must meet particular criteria to qualify for VCT investment.
  • Are VCTs an alternative to pensions for high earners?

From an early stage in their career every tax adviser is reminded to take care not to let the tax tail wag the commercial dog. In addition we need to take care not to be giving investment advice that we are not qualified to give. Before taking any action based on the following it is important to take appropriate investment advice from a suitably qualified source. Many taxpayers have allowed themselves to be seduced by tax efficient investments that without the tax aspect were poor. Film partnerships come to mind. When the tax has not worked out as intended the poor investment has become...

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