Venture Capital Trusts (VCT) planning
Venture Capital Trusts (VCT) are a key part of our planning when advising company directors and higher income individuals.
With the reduction in the annual allowance for making contributions into pensions VCTs will evidently play a more central role to reduce your tax.
VCTs are listed on the London Stock Exchange a provide a means of raising capital for small, expanding businesses with the aim of generating tax free returns for investors.
- The main advantage of a VCT is that the investor will receive tax relief of up to 30% if they hold the investment for at least five years.
- Maximum of £60,000 tax relief per annum
- Dividends from the VCT are tax-free
- There is no capital gains tax on gains
With the right Venture Capital Trust planning we can help create a strategy for profit extraction from your business or reducing those hefty tax bills for higher earners.
Please contact our team to discuss further how we can help.