The Association of Investment Companies (AIC) has leapt to the defence of VCTs following the government clampdown announced in today’s Budget.
The Budget confirmed the government’s opposition to enhanced share buybacks on VCTs and dividend payments arising from a reduction in share capital.
However, it also signalled a wider consultation into VCTs to take place in summer 2014, with the government declaring that it was “concerned” about the sector.
It will particularly crackdown on investment in renewables by VCTs.
Ian Sayers, director general of the AIC, the trade body that represents the VCT industry, said: “We are confident that VCTs will successfully manage the impact of these changes, as they have done in the past, and will continue to meet the needs of investors.”
Mr Sayers claimed the Budget actually highlighted the government’s “commitment to VCTs” because it introduced new rules that will allow VCTs to be bought and sold on platforms.