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VCTs in for a lucrative year

Venture capital trusts (VCTs) are looking forward to a bumper year due to the coming rise in the top rate of income tax and reduction in pension tax relief for high earners, the Association of Investment Companies (AIC) predicts. Matthew Woodbridge, head of investment products for Chelsea Financial Services, said: “The Budget bombshells that were dropped by the chancellor have made VCTs much more attractive to higher earners. Investors are turning to them as a tax haven.”