Should you consider tax-efficient VCTs and EISs as an alternative to pension investments?

Despite having a 20-year plus history, EIS, VCT, and BPR vehicles are still avoided by some investors - despite them being strong alternatives to the traditional pension investments currently on offer says Jack Rose, business development director for tax products at LGBR Capital

Enterprise investment schemes (EIS), venture capital trusts (VCTs) and business property relief (BPR) products are by no means new in the market place.  BPR was first introduced in the 1976 Finance Act, EIS replaced the old Business Expansion Schemes in 1994, while VCTs were introduced in 1995. Figures for assets raised in BPR schemes are hard to come by, but the last tax year saw £1bn raised across EIS and VCTs. Since their inception EIS have attracted over £10.7bn and VCTs over £5.4bn into the UK small and medium enterprise sector. However, despite all three structures having an e...