Albion Ventures plans to launch into the inheritance tax market to diversify its product range ahead of the FSA’s proposed Ucis ban.
Albion is one of the largest independent venture capital investors in the UK, managing approximately £230m across seven VCTs. In September, Fundweb revealed the Association of Investment Companies believes VCTs may come under the proposed Ucis ban, which will limit distribution to only sophisticated, high net-worth investors.
Albion managing partner Patrick Reeve says: “VCTs are always the core of our business and I do believe the Government is fully behind VCTs. I do not believe the FSA will be so foolish as to reject logical arguments against them coming under the Ucis ban.
“However we are going to enter the IHT space in the first half of next year to diversify our product range. This is on the back of demand from wealth managers, who often ask if we have any of these products. People are dying and it is a very expensive tax.”
Reeve refused to give any further details about the IHT products the firm will offer.
Charles Stanley head of investment research Ben Yearsley says: ”There is a need for buinesses that are solely focused on VCTs to diversify. If you look at the most successful ones already, most have other strings to their bow.”