Tax-conscious investors could save 30pc on their bill if they transfer their old Isas into a venture capital trust (VCT) before the April 5 deadline.
Listed on the London Stock Exchange, VCTs are investment companies that provide generous tax breaks in return for investing in risky smaller companies.
They offer 30pc tax breaks on any cash invested up to £200,000 in new shares issues by these companies and typically invest in smaller or unlisted companies.
As such they are typically more risky than other investments, although these stocks are also more likely to grow quickly.
That last is nonsense of course. However.
Consider Ritchie’s mantra. Pensions savings don’t go into new investment, they just buy second hand stocks. This doesn’t build the new infrastructure the future needs. Therefore there should be no tax relief. Tax relief should only go to new investment in real stuff.
So, here’s tax relief purely for investment in new stuff.
The test? This is unconscionable tax avoidance or exactly what Ritchie is arguing for?