Neil Martin talks to Daniel Rodwell, Managing Director at GrowthInvest, about the changes to pension allowances and how EIS & VCTs can take on an important role.
The predicted capacity crunch on VCT and EIS offers that took place in the last financial year, will mean that advisers and investors will have to start planning their tax-efficient investments even earlier this year, according to Daniel Rodwell, Managing Director of GrowthInvest. It has traditionally been in the early autumn when VCT and EIS managers tend to launch their latest offers, but Rodwell believes that a fear of lack of capacity, combined with a growing realisation that tax-efficient investments can be a very effective part of pension planning for some clients.
A realistic alternative
Daniel says that pension changes are fuelling interest in alternative investments and driving a lot of new enquiries to the platform from advisers, and direct investors: “More advisers are beginning to understand how these investments can be used within pension planning for appropriate and suitable segments of their client base. EIS and SEIS are a realistic alternative for those people that are hitting the upper limits of the lifetime value; those people that are impacted by the new rules”
