AIC responds to tax changes in Autumn Budget

Richard Stone, Chief Executive of the Association of Investment Companies (AIC), said: “The Chancellor clearly had a challenge to balance the books in today’s Budget with commitments to higher spending and government investment. There is a recognition that the government and public purse cannot drive growth alone. We believe the private sector, including individual savers and investors, should be encouraged to play a part too. The government’s commitment to the ISA scheme and limits for the next five years is welcome, as is the extension of the venture capital trust (VCT) scheme through to at least 2035.

“It’s disappointing to see higher capital gains tax for investors from a government which has put so much emphasis on investment and growth. Increased tax on profits from shares is a disincentive to invest in the stock market outside an ISA or pension. Bringing all AIM shares and pension funds into the scope of inheritance tax will act as a disincentive to build and retain those long-term investments for the benefit of future generations.

“Everybody can make capital gains on their stocks and shares up to the annual allowance of £3,000 before being liable for any capital gains tax. Investors should make full use of tax-efficient ways to invest – the pension allowance and ISA allowance. Investors may also want to consider VCTs which invest in small and high-growth UK companies.”

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Notes to editors

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