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70 per cent of HNWIs consider VCTs and EIS as pension alternatives


In a recent survey of High Net Worth investors conducted by Wealth Club, 70 per cent of respondents said they plan to invest in Venture Capital Trusts (VCTs), Enterprise Investment Schemes (EIS) or Seed Enterprise Investment Schemes (SEIS) this year. 

This is in direct response to their curtailed pension contribution limits. As a reminder those earning over GBP150,000 will see pensions contribution limits reduced to as little as GBP10,000 per tax year.
Ben Yearsley, Investment Director, Wealth Club, says: With the introduction of the new restrictive pension rules on 6 April, investors are looking for alternative ways to invest tax efficiently for their future. VCTs and EIS could be the major beneficiaries as 70 per cent of respondents to Wealth Club’s recent survey said they would look to invest.

Two recent rule changes affect many high earners in respect of pension savings. Firstly the tapered annual contribution allowance limiting high earners to as little as GBP10,000 per annum and secondly the reduction in the annual lifetime allowance to GBP1 million. VCTs and other tax advantageous schemes investing in small, unquoted companies are the alternative of choice.

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