On Wednesday the Chancellor of the Exchequer, Philip Hammond, announced his Autumn Budget. As ever there was lots of speculation leading up to the Budget, however there were no major changes announced which will affect the financial planning solutions we provide.
The key change for us were in regards to the tax-efficient Venture Capital Trusts (VCT) and Enterprise Investment Schemes (EIS); in particular how these schemes invest. The Chancellor expressed concerns over certain types of VCT and EIS investments which appeared to be ‘lower risk’, which goes against their ‘high risk, high reward’ principle.
Importantly, there were no changes to the tax advantages provided by VCTs and EISs and investors can still benefit from 30% income tax relief, tax-free dividends and capital gains tax exemption on their investments.
For a full round up of the key Budget changes – including changes to stamp duty land tax for first-time buyers and the increased personal allowance – please watch the video below from our research partners at Morningstar: