Transact is to open up direct investment into VCTs via its platform beginning with Octopus VCTs.

The London-based platform provider says that following Royal Assent for the Finance Act 2014, shares in VCTs no longer need to be bought directly from a provider and then re-registered to a nominee.

This means that investments can now be made through a nominee and the income tax relief can still be reclaimed by the client. Tax certificates will be supplied by the share registrar to the client. By investing through Transact the assets will be held in the client's portfolio alongside their other holdings on the platform.

Transact has initially worked with Octopus Investments, a VCT provider of VCTs, to provide access but other VCT providers may follow.

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Transact says that direct investment also provides VCTs with the same advantages afforded to other platform assets with no need to submit an application form and cheque, no further anti-money laundering checks required and adviser charging facilitated by Transact from cash held within the portfolio.

Jonathan Gunby, chief development officer at Transact, said: "This development further demonstrates our commitment to providing access to the widest range of assets. We are pleased to have worked with Octopus to simplify the VCT investment process. Our solution can be adopted by other VCT product providers if they wish to do so."

Shaun Sandiford, head of platform distribution at Octopus, said: "This development is a significant and important step in helping to meet the needs of our financial advisers. The service from Transact makes it easier for advisers and their clients to access and manage the attractive investment opportunities offered through a VCT."