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Confidence tracker: Advisers get on board with VCTs

Advisers taking part in a poll by VCT provider Albion Ventures said clients valued the tax-free dividend feature of a VCT, while others had already maximised their Isa contributions.

Some 16 per cent were looking for a harbour to protect their pension assets.

A further 11 per cent of advisers said they believed their clients would be investing in VCTs as a means of improving their portfolio diversification.

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Advisers also said they have become more familiar with the sector, with 10 per cent attributing rising VCT popularity to this.

Patrick Reeve, managing partner of Albion Ventures, said: “VCTs are set to attract many new investors this tax year and this is underlined by our own experience as we’re seeing interest from an increasingly wide range of potential investos.”

These have ranged from young professionals to the comfortably retired, he said, adding: “The findings also suggest that advisers have become more familiar with VCTs, possibly as a result of RDR, and as a result feel confident recommending them to suitable clients.”