VCT and EIS knowledge is also highly valuable
Estate planning is not the only area where a knowledge of tax-efficient investing can help you unlock opportunities.
Venture Capital Trusts and investments that qualify for the Enterprise Investment Scheme are good ways to add value for high-earning clients by helping them reduce their tax bills, diversify their portfolios, and create a tax-free income stream or growth.
The Octopus tax planning special will look at potential opportunities in your client bank. For more information, and to reserve your place, visit octopusinvestments.com/octopus-online-show-episode-5/
Tax-efficient investments are high risk
It’s important to consider all the risks before recommending a tax-efficient investment.
These are high-risk investments that put capital at risk. The value of these investments, and any income from them, can fall as well as rise. Investors may not get back the full amount invested.
In addition, the shares of smaller companies and VCTs can fall or rise in value more than shares listed on the main market of the London Stock Exchange. They may also be harder to sell.
Investors also need to be aware that tax treatment will depend on their personal circumstances, and tax rules could change in future. Tax reliefs also depend on the companies invested in maintaining their qualifying status for the relevant relief.
Jessica Franks, Head of Tax
VCTs, EIS and BPR-qualifying investments are not suitable for everyone. Any recommendation should be based on a holistic review of your client’s financial situation, objectives and needs. We do not offer investment or tax advice. Issued by Octopus Investments Limited, which is authorised and regulated by the Financial Conduct Authority. Registered office: 33 Holborn, London, EC1N 2HT. Registered in England and Wales No. 03942880. Issued: September 2020. CAM010201.
1 ‘How the advice sector is adapting to the coronavirus crisis’, Fidelity International, June 2020
2 Unlocking Estate Planning: How Business Property Relief is opening doors for advisers, published by Octopus Investments, February 2020
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