High Risk Strategies

Are you looking for an alternative to pensions in 2009/10?

Why?

Pension tax relief will become restricted: high earners may be restricted to 20% income tax relief on contributions to pensions in excess of £20,000 in 2009/10.

VCTs provide substantial tax benefits:
(i) 30% income tax relief on subscriptions of up to £200,000 (minimum five year holding period & relief is restricted to investor's tax liability); and
(ii) tax-free dividends & CGT free growth. VCT tax reliefs are subject to personal circumstances.

Risk Factors
An investment in a VCT, EIS or IHT scheme carries a higher risk than many other forms of investment. In addition, the value of an investment in VCT's, EIS or IHT Offers may go down considerably as well as up and investors may not get back the full amount invested, even after taking into account the tax reliefs. VCTs usually trade at a discount to their net asset value. There is no market for EIS or IHT schemes.

The past performance of VCT's should not be regarded as a guide to future performance. It may be difficult to exit Funds and they should be considered as long-term investments. If a VCT, EIS or IHT scheme does not raise sufficient funds to reach critical mass, then it may be difficult for it to achieve a spread of investments, which could increase the risks for investors.

James Pearcy-Caldwell
Director

Dated 5 July 09 – valid for 6 months. AisaProfessional is a trading style of Aisa Direct Ltd, authorised and regulated by the FSA as Independent Financial Advisers. 1 Fordbrook Business Centre, Pewsey, SN9 5NU

Notes …

Please note that the opinions expressed in this letter must not be construed as statements of fact – you should carry out your own further research before coming to a decision and before taking any action.
The views in this letter represent the opinions of Aisa and should not be construed as a statement of fact. Further advice should be sought before actioning any investment or tax advice. The Financial Services Authority does not regulate opinions on the economic outlook, nor does it regulate some forms of tax advice or comment such as this.

* This newsletter has been prepared with all possible care to ensure its accuracy. It is based on our current understanding of legislation and HMRC practice. 
* Neither Aisa Direct Ltd nor any of its employees can accept responsibility for any errors or omissions. You should seek further professional advice prior to action.

This should not be deemed as individual advice and you should seek further information particular to your individual circumstances. For further information, contact AisaProfessional on (0845) 838 7279.