There
is no doubt that today, everybody wants to grow his money and
resources. So for this purpose, he always remains in search of a good
way of investing his money. So for this reason, the VCT and the EIS
are a really popular choice in UK as well as the whole world. Both
of these are a perfectly suited choice for the individual specially
because there are confirmed chances of tax relief with the help of
this investment. It is a common fact of knowledge that the most
attractive and valid reason for the investors to invest in VCT's is
the 30% tax rebate according to the total amount of investment.
In simple words, if a person invest a total of £100 in the venture capital trust shares and his annual tax amount also costs about £100, the investment in the VCT shares will reduce his tax amount by 30% which simply means that he has to pay only £70 instead of £100.
It is to be remembered that the main purpose of
the government behind such reliefs is only to provide investment
facilities to the small non-listed businesses.
The only thing which is a problem for the
investors and stops them from making investments in the VCT's is the
high risk of loss to them. They do not prefer it sometimes because
the money which is invested is to be used by the non-listed and high
risk taking small companies. However, it is a point to be noted that
the government has increased the investment opportunities of EIS than
the VCT's which can simply cause of a decrease in the VCT shares.
If you are looking to make an investment in VCT or
EIS, you should make sure about the suitability according to the last
budget report from the government. If you think that making an
investment in the EIS will earn you more than the VCT's, then you
should go with it. It is also a good idea to consult your financial
advisor of you are having problems in making a choice between VCT's
and EIS. There is no doubt that it will be a worthy step towards
getting your money into circulation with a right way.
Resources:
Enterprise Investment Schemes, Venture Capital Trusts, Annuities UK
Learn more about VCT investment opportunities, visit : Investment Guide for VCT and EIS
Resources:
Enterprise Investment Schemes, Venture Capital Trusts, Annuities UK
Learn more about VCT investment opportunities, visit : Investment Guide for VCT and EIS