Is the government stifling the tax-advantaged sectors?

Changes to tax rules made in last year's Budget

Recent changes to the rules governing the tax-advantaged sector have created more restrictions in terms of what VCT and EIS funds can invest in, however there is no sign of a retreat on the part of the UK government in regards to the concept of tax-advantaged investment, according to managers.

Indeed, the various reliefs related to VCTs, EIS, SEIS or IHT portfolio services, not only remain in place, but given the changes on pensions last year, these products are the only "tax-advantaged, legitimate, government-endorsed vehicles left in town" according to Mark Brownridge, research and development analyst at Mazars Financial Planning. David Stevenson, fund manager at AIM VCT manager Amati, agrees as he points out there is an interesting combination of events currently within the sector. "In one and the same Budget statement [last year], you had restrictions placed on other ta...