Moving VCT's into SIPP after the five year qualifying period

[dingdong]

I've just been reading the article below which suggests you could get a tax benefit by moving your VCT's into your SIPP after the five year qualifying period.

However I'm confused about how that would work. Surely any "Bed & SIPP" transaction involves selling your VCT shares in your GIA and then essentially buying the same VCT shares on the open market (with no additional 30% benefit?) in your SIPP.

So is it really just saying you can invest your VCT sale proceeds into your SIPP and get a tax benefit from that contribution (in which case you'd probably want to invest in something else in your SIPP!).

Or am I missing a trick here?

https://www.fiduciawealth.co.uk/2010/02/vcts-and-combining-vct-with-pensions/

[UncleEbenezer]

Without reading the article ...

Perhaps the suggestion is that if you want to keep your VCTs, you can bed-and-SIPP them - assuming your provider will do that without extortionate charges. That could be useful if you want to use your SIPP allowance for a year when you don't have spare cash to put in.

I considered variants on the idea for raising money without losing tax-shelter benefits. But that would've most likely been moving pre-five-year VCTs into the ISA to liberate non-ISA cash. And it didn't happen.

[parallellines]

So is it really just saying you can invest your VCT sale proceeds into your SIPP and get a tax benefit from that contribution (in which case you'd probably want to invest in something else in your SIPP!).

I think so.

No mention in the sales pitch that most of the tax benefit is cancelled out when you take the VCT back out. As you say far better to fund a pension from funds which don't already have tax advantaged status , if you have sufficient.