2010 could be last chance for VCT tax relief

Date: 5th March 2010

Britons looking to invest in a limited life venture capital trust (VCT) could miss out on tax relief if they wait until next year.

This is the view of pension specialist Fair Investment, which claimed that 2010 could represent the last chance for investors to receive a "generous" 30 per cent relief on such products.

Nick Scarrett, head of investment and pension services at the firm, said: "There are rumours that the government may change VCT qualifying rules in April, potentially making VCT investments riskier and signalling the end of limited life VCTs, also known as planned exit VCTs.

"If you are interested in VCTs and considering a limited life investment, now could be your last chance because any changes are unlikely to be retrospective."

The warning comes as data released by the firm revealed that total VCT investment in the UK is set to reach £250 million before the end of the current tax year.

This would represent an increase of 70 per cent when compared to the previous 12 months.