Jul 022015
 

In this article we take a look at the Venture Capital Schemes and ask whether the risks involved are really worth it. In particular we see there are two types of risk – investment risk and tax risk. Investment risk can lose you money, but losing the tax reliefs is not necessarily fatal.

This article was first published on linkedin. Continue reading »

Venture Capital Trusts Part Four – What does the investment portfolio look like?

 Investment Tax, Venture Capital Schemes  Comments Off on Venture Capital Trusts Part Four – What does the investment portfolio look like?
Sep 042014
 

This is the fourth in our series of articles on venture capital trusts.

(This article can be downloaded in pdf format in portrait or landscape version at Academia.edu.)

In this article, we shall be exploring the conditions that describe what the portfolio looks like “on the outside” – the rules governing the type of investments that can be made, the way in which the company’s income must be distributed, and how much of the portfolio must be invested in the riskier class of assets that are the basis of the Venture Capital Scheme.

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Jan 202014
 

This is the third in our series of articles on venture capital trusts. In this article we shall look at the conditions relating to the VCT itself. In particular, we shall look at the way the VCT is structured as opposed to the way in which the business is run, or the conditions attached to the investments in the underlying portfolio. These topics are the subject of future articles in this series.

(This article can be downloaded in pdf format in portrait or landscape version at Academia.edu.)

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Venture Capital Trusts Part Two – Who are the investors?

 Investment Tax, Venture Capital Schemes  Comments Off on Venture Capital Trusts Part Two – Who are the investors?
Nov 062013
 

This is the second in a series of articles on venture capital trusts. In Part One we looked at the tax breaks on offer for those brave enough to risk their capital. In this article we shall take a closer look at the investors – who they are, how they can invest, and what are the strings attached to the investment.

(This article can be downloaded in pdf format in portrait or landscape version at Academia.edu.)

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Sep 032013
 

Share buybacks are an attractive way in which VCT investors can realise their investment. However, HMRC is concerned that this technique is also being used to access another round of tax relief, without necessarily supplying new cash to the businesses for which the scheme was intended to benefit.

So what is the problem, and what is the Government proposing to do about it? Continue reading »

Jul 162013
 

This is the first in a series of articles on venture capital trusts, an investment vehicle designed for those who want to invest in growth stocks but who want the comfort of having a professional manager doing the hard work for them. (This article can also be downloaded in pdf format at Academia.edu.)

We shall start off by looking at the tax breaks on offer. But first…

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Jul 122013
 

Please note, this table and the commentary are out of date. A more up to date version which takes into account the new Social Enterprise Investment Scheme can be found here

There are three types of Venture Capital Scheme, each one with tax breaks to induce investors to part with their hard earned money. The following table is a summary of these tax breaks, together with the relevant statutory provision. Continue reading »