VCTs lose their shine
New EU rules could reduce the attractiveness of venture capital trusts (VCTs) for pension savers, warn Harris & Co chartered accountants Northampton. VCTs currently offer tax relief of 30% on up to £200,000 invested each year, providing that the investment is retained for at least five years. However, new rules will see VCTs having to put money into much earlier stage - and therefore riskier - businesses than they have done in the past. Neither will VCTs be able to invest in companies that have undergone a management buy-out.