Noble, the investment managers, believe up to £180 million in income tax relief is expected this year for investors in venture capital trusts, but very few are aware of the massive tax savings that are open to them.
In a survey carried out by the company, 72% of investors didn't know about the forty per cent income tax relief available, which would make a big difference to their overall returns.
Our view
Venture Capital Trusts are attractive investments from a tax relief angle. However, look at their name: VENTURE capital trusts. You invest in primarily newer enterprises. There is therefore perhaps a greater degree of risk than other investments.
Ventures do fail as well as succeed. If you are happy with higher risk then consider VCT's, if you are not then look elsewhere.