Industry news. UK VC gets funding boost as investors look for alternative tax relief

One of the major reasons for this is investors hit by cuts to pension tax relief feared a government crackdown on VC trusts. These trusts are listed funds that pour money into high-risk early-stage UK companies that aren’t listed on the stock exchange. Wealthy investors like them because of the tax breaks they offer.

For investing in a portfolio of rising businesses, any of which could fall flat on their face, investors receive income tax credits worth 30% on investments up to 222,500 euros, while their returns are exempt from capital gains tax. Perhaps unsurprisingly, the popularity of such schemes has risen recently as relief on pension contributions has been slashed in the UK, which has decreased the amount of money investors can save in a pension, sending well-heeled investors seeking tax relief elsewhere.

Read more here.