Here at Intelligent Partnership we have found that more than nine in ten (91%) of advisers expected to do more business into VCT ‘s over the next 12 months, according to research carried out for our VCT report.

The Discussions we’ve had with advisers revealed that lower limits on the amounts that can be saved into pensions, and the threat to higher rate tax relief are expected to lead to increase take-up of other tax efficient alternatives, such as VCTs.

The Latest figures from the AIC reveal that the VCT sector has raised £429m in the 2014/2015 tax year, the highest amount raised since 2005/6, with VCT funds under management rising from £3.22bn to £3.46bn over the year to 5th April 2015.

Our report also looks closely at the potential impacts of the recent changes announced in the July Budget to ensure continued compliance with the EU State Aid Rules. Funds raised via the scheme can no longer be used for company acquisitions or management buy outs, and this will mean that some VCTs will have to adjust their operating models and are likely to have to take on more investment risk than previously.

Another new development that our report highlights is the inclusion of VCTs on adviser platforms. Changes announced in the 2014 Finance Bill allowed shares in VCTs to be bought by a nominee and still qualify for the tax reliefs. Nominee ownership is a key requirement in enabling financial advisers to manage their clients’ investments on platforms.

Amati Global Investors, Foresight Group, and Puma Investments are the latest providers who are now available on the Transact platform, and after holding a round table discussion with other VCT providers we found that more are expecting to follow in their footsteps.

At the round table Jonathan Gunby, Chief Development Officer of Transact commented: “This development further demonstrates our commitment to providing access to the widest range of assets. We are pleased to have worked with Octopus to simplify the VCT investment process and will be adding more VCT providers.”