£475million has been poured into VCTs by investors

The last tax year, 2015-16, was the third-highest year for fundraising since it began in 1995, according to the Association of Investment Companies, for Venture Capital Trusts (VCTs). Many investors are looking for ways to save their money for retirement and VCTs seem to be in popular interests. The tax year which made the highest funds was 2005-06 with vehicles raising an amazing £779million.

An astonishing £475million was raised in the 2015-16 tax year, an improvement from the previous tax year which raised £429million, bringing the total VCT fund under management to £3.6billion. The financial times reported, the Financial Planner at Wealth Manager, Tilney Bestinvest, said the reduction of annual and lifetime allowances on what can be saved into a pension was prompting savers who were already using their full ISA allowance to consider VCTs.

The AIC states the many benefits that come with VCT shares, including a 30% tax relief upon subscription; being a considerable sum on £200,000, which is the maximum investment amount in order to receive income tax relief. The minimum time you must hold a VCT is five years, plus you will receive tax-free dividends; however, the tax relief you receive from VCTs will depend on your individual circumstances. Almost every investment company has set rules for VCTs that must be strictly followed and additional rules apply in order for investors to receive tax relief.

Exact Financial Systems offer an enterprise level investor management solution that is modern, flexible and affordable, LIBRIS Financial, powers two of the top ten UK VCT providers, capturing the whole application life- cycle of tax efficient products, such as VCT, EIS, or IHT investments.

Contact Exact Financial Systems today for more information on LIBRIS Financial, either by telephone on +44 (0)207 256 1234 or email at info@exactsystems.co.uk.