Intelligent Partnership’s research was highlighted in one of Fund Strategy’s articles. Click here to view the original post.
Seven out of 10 advisers believe that VCT investments can sit alongside ISAs and pensions, according to a report by Intelligent Partnership.
In total 82 per cent of advisers recommend VCTs to clients, up from 67 per cent from last year’s survey, which the report argues could be due to pension limits.
VCTs were recommended primarily for non-IHT tax planning. Additionally, nearly half of all advisers surveyed recommended VCTs due to their tax-free dividend income.
Sixteen per cent have never used the product, down from 23 per cent last year.
Those who were weary of VCTs listed investment risk as their top concern followed by compliance and due diligence, as well as liquidity. The FCA’s 2016 thematic review highlighted concerns with adviser due diligence.
St James’s Place’s Christopher Green says: “I think it’s really vital with the VCTs that people understand that they are stepping away to a great extent from what they would normally think of as conventional investment – a bond or unit trust or ISA.”
The report is based on 124 responses from advisers involved in tax efficient investments.