Association of Investment Companies response to VCT rules

The Association of Investment Companies (AIC) has responded to the proposed changes to the VCT rules in today’s Budget.  To ensure VCT investment is more closely focussed on entrepreneurial high risk and high growth businesses, new investment rules have been introduced, including a risk to capital condition.

Ian Sayers, Chief Executive of the Association of Investment Companies said: “It’s reassuring that private investors will continue to receive the existing tax-reliefs on VCT investments.  This will help VCTs provide vital scale-up capital for the UK’s most innovative and ambitious smaller companies.

“However, the Chancellor has announced significant VCT rule changes and we need to consult with our VCT members, their managers and the Government to ensure that they are workable within the commercial reality of funding small businesses.

“The VCT industry faces significant challenges in complying with these rule changes but the industry has the benefit of highly experienced managers. These managers have adapted to changes in the past and continued to deliver good returns for shareholders.”