Save tax and back small firms

For investors who have used up their annual Isa allowance, venture capital trusts (VCTs) are another tax-efficient option to consider. In fact, VCTs offer more generous tax breaks than Isas, as well as a larger annual investment allowance; the flip side is that the underlying investment is higher risk.

VCTs are funds run by a professional manager who chooses a portfolio of qualifying companies. These must be businesses that