Mini-budget: AIC welcomes vote of confidence in VCTs
We warmly welcome the Chancellor’s announcement in his mini-budget that VCTs will be extended beyond 2025.
The Association of Investment Companies (AIC) has warmly welcomed the Chancellor’s announcement in his mini-budget that venture capital trusts (VCTs) will be extended beyond 2025.
Richard Stone, Chief Executive of the Association of Investment Companies (AIC), said: “This is a strong vote of confidence in VCTs and we applaud the government’s intention to continue the scheme beyond 2025.
“VCTs provide scale-up finance for growing businesses and are fully aligned with the government’s drive for growth, creating jobs, funding innovation and boosting exports. We look forward to clarification of how the government will remove the existing uncertainty surrounding the scheme.”
The AIC has been seeking the removal of the so-called ‘sunset clause’, which ends the upfront 30% income tax relief for VCT investors from 6 April 2025. This does not affect investors’ tax relief on VCT investments made before this date.
For further information on the role VCTs play in the UK economy and the case for removing the sunset clause please see the AIC’s submission to the Treasury Committee on venture capital.
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Notes to editors
- 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 vision is for closed-ended investment companies to be considered by every investor. The AIC has 357 members and the industry has total assets of approximately £269 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.
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