AIC responds on Budget changes to VCT rules.
The Association of Investment Companies (AIC) has responded to the proposed changes to the VCT rules in today’s Budget. To ensure VCT investment is more closely focussed on entrepreneurial high risk and high growth businesses, new investment rules have been introduced, including a risk to capital condition.
Ian Sayers, Chief Executive of the Association of Investment Companies said: “It’s reassuring that private investors will continue to receive the existing tax-reliefs on VCT investments. This will help VCTs provide vital scale-up capital for the UK’s most innovative and ambitious smaller companies.
“However, the Chancellor has announced significant VCT rule changes and we need to consult with our VCT members, their managers and the Government to ensure that they are workable within the commercial reality of funding small businesses.
“The VCT industry faces significant challenges in complying with these rule changes but the industry has the benefit of highly experienced managers. These managers have adapted to changes in the past and continued to deliver good returns for shareholders.”
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- The Association of Investment Companies (AIC) was founded in 1932 to represent the interests of the investment trust industry – the oldest form of collective investment. Today, the AIC represents a broad range of closed-ended investment companies, incorporating investment trusts and other closed-ended investment companies and VCTs. The AIC’s members believe that the industry is best served if it is united and speaks with one voice. The AIC’s mission statement is to help members add value for shareholders over the longer term. The AIC has 349 members and the industry has total assets of approximately £172 billion.
- Disclaimer: The information contained in this press release does not constitute investment advice or personal recommendation and it is not an invitation or inducement to engage in investment activity. You should seek independent financial and, if appropriate, legal advice as to the suitability of any investment decision. Past performance is not a guide to future performance. The value of investment company shares, and the income from them, can fall as well as rise. You may not get back the full amount invested and, in some cases, nothing at all.