How VCT's Help You to Grow your Money and Gain Tax Relief?

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