Diversifying your investment portfolio could help to maintain growth of income; with the end of the tax year in sight many use Venture Capital Trusts (VCTs) as a financial planning tool. VCT’s give the chance for investors to support the growth of small UK businesses and receive attractive tax reliefs in return. Often they appeal to high earners with total income over £150,000 who are affected by the tapered pension annual allowance and who want to reduce their Income Tax bill. A VCT is a company whose shares trade on the London stock market. Investments in VCTs carry tax relief to encourage you to invest in these smaller, higher-risk companies. Seeking professional financial advice could help you to manage your investment portfolio.
