Investment into VCTs managed by Foresight Group (Foresight), an independent infrastructure and private equity investment manager – including the current offer for Foresight 4 VCT – will now be able to accept ISA funds through a new partnership with Platform One.
The partnership will allow investors to transfer funds from existing ISA products into Foresight 4 VCT whilst maintaining ISA status and without sacrificing their lifetime allowance.
Investors will find the platform provided by Platform One and the application process both intuitive and easy to navigate. It facilitates full or partial transfers of ISAs along with a range of other wrappers available, including Innovative Finance ISAs, so that the entirety of a client’s portfolio can be managed in one place. What’s more, investors taking advantage of the offer through Platform One will receive a reduction of 0.5 per cent in initial charges.
Investment into VCTs has become increasingly mainstream, reflecting the impact of Pensions Freedom changes and the reduced lifetime and annual allowances. Since introduction in 1995, VCTs have raised approximately GBP7.7 billion of funds and in the 2017/2018 tax year, funds flowing into VCTs amounted to the second highest figure on record at GBP745 million.
Foresight 4 VCT, managed by Foresight Group, is a generalist VCT aiming to provide investors with a target annual dividend of 5 per cent tax-free income. Foresight 4 VCT has around GBP100 million of assets invested across a portfolio of 21 unquoted UK companies including Datapath Group Limited, TFC Europe Limited and Aerospace Tooling Corporation Limited. It is the intention to maximise tax-free income available to investors from a combination of dividends and interest received on investments and the distribution of capital gains from trade sales or flotations.
Bethany Dudley, Associate Sales Director at Foresight Group, says: “It makes sense for investors who have done the right thing in utilising their tax free ISA allowances over several years to be able to deploy those tax free funds into Foresight 4 VCT and take advantage of the tax reliefs available without sacrificing their lifetime ISA allowances. We expect there will be big demand from our advisers and their clients.”
“With persistent low interest rates, we’ve seen increasing demand from investors looking to put their savings to better use and therefore we are delighted to offer them this additional option.”
Alex Cowan, Platform One, says: “Platform One is committed to connecting advisers with a diverse range of investment vehicles through our award winning wrap platform. We’re thrilled to be partnering with Foresight Group to provide an ISA wrapper for their industry leading VCT products.”