Where does the smart money go?
At this time of year, many investors have just paid, or are about to pay, their income tax bills for the previous tax year. Given the restrictions (and likely further restrictions) on the amount of money individuals can get tax relief on through pension contributions, pensions are of little help as income tax planning tools for higher earners. One obvious answer, for those with the appropriate risk appetite is investment in Venture Capital Trusts.
However, the market for VCTs has been disrupted over the last 18 months by significant changes to the VCT rules. Many well known VCT managers are having to turn their back on established strategies, hire new staff and effectively start at the beginning again. Only a small number of managers are genuinely unaffected by these changes; one of these is Pembroke VCT.
Wealth Club‘s Ben Yearsley, well known market commentator and ex-head of VCT research at Hargreaves Lansdown, has recently tipped Pembroke as “worth considering” and put his money where his mouth is.
Mr Yearsley is not the only person to put their money into Pembroke. A number of other well known and high profile investors have personally backed Pembroke VCT. Staff here at Kin Capital and the home team at Oakley have put in over £1.1 million of their own money, representing a relatively high proportion of ‘friends and family’ compared to other VCTs.
Please note: Kin is unable to give taxation or financial advice and strongly recommends private investors speak with a suitably qualified independent financial adviser. Your capital is at risk and all our products are long term, high risk investments. They will not be suitable for all investors. The level of tax relief received depends on individual circumstances and may be withdrawn at a later date.