70 / 92
70
“Investors seem to be on the right track when it comes to their investment horizons. 70% look
between 5 and 10 years ahead when making tax-efficient investments”
HOWLONG IS YOUR INVESTMENT
HORIZONWHEN INVESTING IN
TAX-EFFICIENT INVESTMENTS?
Investors seem to be on the right track
when it comes to their investment
horizons. 70% look between 5 and
10 years when making tax-efficient
investments. It is important to keep in
mind that the survey was targeting all
tax-efficient investments, not only VCTs
– so investors targeting 1 to 3 years
may be more focused on EIS or SEIS
investments (or at least we hope!).
1-3 years
3-5 years
5-10 years
>10years
10%
70%
10% 10%
WHEN YOU INVEST IN TAX-EFFICIENT INVESTMENTS, DO YOU INVEST IN:
Looking at the types of companies investors
preferred, 50% diversify across quoted and
unquoted companies while the other have
preferred the transparency of the AIM market.
The top three reasons for investing were the most obvious: tax relief, growth and something that it seems more investors think that
they get from tax-efficient investments than advisers do – diversification, which only 25% of advisers ticked as important.
WHAT ARE YOUR TOP 3 REASONS FOR INVESTING IN TAX-EFFICIENT INVESTMENTS?
10%
30%
50%
80%
70%
Income tax
relief
Growth Diversification Income
Capital Gains
Tax relief
Contributions
to pension
Support
SMEs
Following
advice
IHT mitigation
60%
40%
20%
0%
Top reason
2nd top reason
3rd top reason
10%
10%
10%
50%
20%
10%
20%
20%
20%
20%
20%
10%
40%
10%
20%
10% 10%
It is good to see that 90% of VCT
investors feel that advice is important
when investing in these products, but as
so few of our respondents had IFAs, we
must assume that they get advice from
other sources such as accountants or
tax advisers.
DO YOU BELIEVE PROFESSIONAL
ADVICE IS ESSENTIAL WHEN
INVESTING IN TAX-EFFICIENT
INVESTMENTS?
Yes
No
10%
90%
Here we see a 50-50 split of the
investors on their future plans for these
schemes.
DO YOU EXPECT TO INVEST
MORE OR LESS IN TAX-
EFFICIENT INVESTMENTS OVER
THE NEXT FIVE YEARS?
Less
More
50%
50%
UNQUOTED
0%
AIM QUOTED
50%
BOTH
50%