Venture Capital Trusts (VCTs)

Oliver Roylance-Smith, Director

In the current economic climate with banks taking a more conservative approach to lending VCT providers are finding increased opportunities to work with exciting and dynamic smaller companies. As a consequence there is greater demand for funding from private investors and we have provided a selection of VCT deals below which are currently available. VCTs are higher risk investments and should only be considered by experienced investors.

Oliver Roylance-Smith, Head of Savings and Investments

Compare Venture Capital Trusts

With our VCT service, you can access Venture Capital Trusts (VCTs) from leading providers in the market today. Through our execution only service we  provide a discount off the initial charge to get you a better deal.

 

For more information on Venture Capital Trusts see our table below of Generalist, Aim and limited life VCTs, many with discounts off their standard inital charges. To receive a VCT investment pack complete our enquiry form and the relevant pack will be emailed to you.

 

Generalist VCTS

These VCTs typically invest in unquoted companies in the hope of making a profit when the company is sold or floated.

Compare Generalist VCT Offers
 Minimum InvestmentAmount RaisingAmount Raised†Initial Charge*More Info
£5,000£20m£0m5.50% 4.50%More Info >

†As at 05/11/2014

*If you invest via Fair Investment Company if indicated a discount off the standard initial charge is available.

 

The value of investments and any return from them can fall as well as rise and you may not get back the full amount invested. Please ensure that you read the Important Risk Information below

AIM VCTs

AIM VCTs are similar to traditional investment or unit trust/OEIC funds where the manager selects companies in which to buy and sell shares. The main difference however is that the fund manager can only invest in new shares of companies listed in AIM or are about to list.

Compare AIM VCT Offers
 Minimum InvestmentAmount RaisingAmount Raised†Initial Charge*More Info
£3,000£7m£3m5.00% 2.00%More Info >
£5,000£20m£10m5.50% 4.00%More Info >

†As at 05/11/2014

*If you invest via Fair Investment Company if indicated a discount off the standard initial charge is available.

 

The value of investments and any return from them can fall as well as rise and you may not get back the full amount invested. Please ensure that you read the Important Risk Information below

Limited Life VCTs

These VCTs have a set shelf life and are designed to "wind up" after a set term providing an exit for investors.

Compare Limited Life VCT Offers
 Minimum InvestmentAmount RaisingAmount Raised†Initial Charge*More Info
£5,000£30m£0m3.00%More Info >
£5,000£25m£13.5m5.50% 4.50%More Info >

†As at 05/11/2014

*If you invest via Fair Investment Company if indicated a discount off the standard initial charge is available..

 

The value of investments and any return from them can fall as well as rise and you may not get back the full amount invested. Please ensure that you read the Important Risk Information below

Why invest in Venture Capital Trusts (VCTs)?

VCTs provide investors with the opportunity to invest in potential high growth/high risk small companies. As these types of investment are high risk and speculative they are only suitable for investors who can afford to tie up money for the medium to long term and can afford loss of capital if that happens.

 

VCTs are highly tax efficient with upfront income tax relief given at 30% and with no tax to pay on any future dividends or capital gains as long as you hold the investment for 5 years.

 

With bank lending remaining sluggish many small companies are turning to Venture Capital Trusts for funding and expertise which is providing VCT managers with a wider range of investment opportunities they can invest in. Typically most VCT offers tend to come in at the end of the financial year in February and March. With the increased funding opportunities many VCT providers are coming to the market seeking investment from private investors.

 

Example of VCT Tax Benefits:

If you are a tax payer you can receive a tax rebate of 30% on money invested into a new issue of shares in a VCT or a top up. So if you invested £20,000 into a VCT you would receive a rebate of £6,000 from the taxman as long as you have paid £6,000 in income tax for the tax year. so the effective net cost of your investment is £14,000. The VCT shares need to be kept for 5 years to ensure you keep the rebate. If the VCT pays dividends you will not have to pay tax on these income payments. In addition when it comes to disposing the shares any gain will be exempt from capital gains tax.

 

Please note all tax treatments are subject to change and depend on your individual circumstances and may be subject to change in future.

 


The VCTs shown on the tables are a selection of current offers available through our non advised broker service.

 Important Risk Information:

This website contains information only and does not constitute advice or a personal recommendation in any way whatsoever. The value of investments and income from them can fall as well as rise and you may not get back the full amount invested. The tax efficiency of VCTs is based on current tax law and there is no guarantee that tax rules will stay the same in the future.

Different types of investment carry different levels of risk and may not be suitable for all investors. Please ensure that you read the Important Risk Information for further details. Prior to making any decision to invest, you should ensure that you are familiar with the risks associated with a particular investment and should read the product literature. If you are in any doubt as to the suitability of a particular investment, both in respect of its objectives and its risk profile, you should seek independent financial advice.