Venture Capital Trusts

Small Businesses Starting to Lose Confidence in Government

Small Businesses Starting to Lose Confidence in Government

A large proportion of UK small business owners are frustrated with the lack of government support with many worried about the negative effect taxes on dividends and the new National Living Wage (NLW) could have on their business. The research by Smith & Williamson, as part of its latest quarterly Enterprise Index, found that the number of small firms that are dissatisfied with the government’s level of support has risen by 10% in the last three months to 30%. Companies stated that, while “broadly supportive” of David Cameron’s government, they were disappointed with the new mandatory NLW (which will rise to £7.20 from April 2016) and the new dividend taxes. Announced in the summer Budget, the dividend taxes will  mean that basic-rate payers have to pay tax on dividend income. This new ... »

Venture Capital Trusts

Investments of up to £200,000 in Venture Capital Trusts (VCTs) offer significant tax incentives to investors including 30% income tax relief. VCTs are quoted limited companies whose purpose is to invest shareholders’ funds in smaller unquoted trading companies, (including AIM listed stocks) having potential for growth, with a view to making profits. Most Venture Capital Trusts are run by investment managers and raise their funds from private investors. What are the tax benefits? Individuals may be able to secure a number of tax advantages from this sort of investment. However, from 6 April 2006, shares in VCTs must be held for at least five years (previously three years) to obtain all the potential tax benefits. In addition, the individual must be 18 years of age or more on the... »