LISA / VCT??

pjread

So, I've been dithering for too long and suddenly find myself with very little time to open a LISA if I ever want one.  I decided at least a token investment to keep the option open for the next 10 years is sensible.  So far so good; there aren't that many providers so I was taking a look at AJ Bell vs HL before pulling the trigger.

One thing that struck me on HL was, beyond the higher charges, the statement that the £45 fee cap applied to "UK and overseas shares, investment trusts, exchange-traded funds, VCTs, gilts and bonds". 

Now maybe I'm getting silly at this point, but I assume these VCT's would need to be purchased on the secondary market - we couldn't e.g. put £4k cash in a LISA, get +£1k 'free', then subscribe that £5k inside the LISA for new VCT shares and claim relief (£1.5k) on that??  Fairly sure the answer must be no but I can't see anyone else asking the Q!

dunstonh

If you dont have the time to buy a LISA, then you shouldn't be looking at VCTs. They are a far more complicated option that requires significantly more knowledge and understanding.   You need to put time into them and if you are not willing, you should not go near them.

but I can't see anyone else asking the Q!

VCTs are used by under 1% of the population. Mainly high net worth individuals with more complicated affairs.   So, it doesnt get the coverage on the internet that you see with mainstream options used by most.

pjread

Yeah I know, small but growing VCT holdings over last few years (<5% of net worth) but very likely to breach the LTA by 60.  Currently trying not to exceed the LTA by too much so pushing excess outside pension to  ISA (LS80/100), a bit in cash and a bit in VCT's - wondered if I'd stumbled on a way to get 'bonus' relief on some of the VCT subs I'd be making anyway, rather than whether VCT's are a good idea in themselves or increasing them (I have the risk tolerance, given I stick <10% VCT - even if wiped out the tax relief takes the sting out a bit..)