Advanced Tax Planning

Once you have utilised pension allowances and ISA limits and have the remainder of your financial programme established, you may wish to consider more speculative investments that offer excellent tax breaks. However it's important to realise that speculative investments mean that you should only invest what you can afford to lose!

Venture Capital Trusts

Venture Capital Trusts (VCTs) may be perceived as a higher risk investment, with portfolios consisting of unquoted companies, but their risks are counterbalanced by their tax advantages. Indeed, VCTs are now firmly established as an attractive means of combining tax efficiency and investment performance. What are their tax advantages? The tax advantages of VCTs are numerous:

  • 30% income tax relief on investments of up to £100,000 per tax year for subscribers if held for five years;
  • dividends from VCTs are free of income tax;
  • there is an exemption from capital gains tax on the disposal of VCT shares; and
  • VCTs do not pay corporation tax on chargeable gains or distributions from UK companies.

Enterprise Investment Schemes

Investing in EIS companies attract 20% income tax relief on an investment up to £400,000 in each tax year. The gains are tax free, and the minimum holding period to qualify for the tax rebate is 3 years. These schemes, although offering generous tax relief, are speculative investments and not necessarily the first step in financial planning.

Film Partnerships

Recent legislative changes have meant there are not many of these schemes available. There are still however opportunities to invest in UK films and receive generous tax incentives. Please contact us on 0121 685 5060 for more information.

Commercial Property Schemes / Enterprise Zone Trusts

There are opportunities to invest in commercial property and gear up using non refundable debt. Please contact us on 0121 685 5060 for more information.

Please note that all the above schemes involve an element of risk and you could lose some or all of your money. Please take professional advice before investing your money.