Commenting on HMRCs latest VCT statistics Alex Davies, a former board director at FTSE 100 stockbroker Hargreaves Lansdown, and currently CEO of The Wealth Club, said: “It is little surprise VCTs are becoming more popular as the restrictions on higher-earners have really started to bite. Investors are unable to put large sums in pensions, so they’ve turned to VCTs as a tax-efficient alternative.
“Demand for VCTs was huge last year, with some offers closing within days due to limited capacity. This year looks to be an even bigger year for VCTs. The most popular offers are already at over 75% capacity within weeks of their opening. This has happened much earlier than usual. I would encourage investors planning to use VCTs to invest now ahead of the fast approaching November budget which could see changes to the tax relief they provide.
“There has arguably never been a better time for investors to consider VCTs and there are compelling reasons for investors to act now rather than wait until after the budget when the rules may well change.”
