VCT Rules
What are the Rules around VCTs?
VCT rules allow you to benefit from tax breaks when you invest in them. Upon investment of up to £200,000, you are eligible for 30% income tax relief, and you also benefit from tax free dividend income and capital gains. There are a number of VCT rules, some of which are in place to protect you, the investor. VCT rules include:
- You can invest a maximum of £200,000 per tax year
- Income tax is repayable if you sell in the first 5 years
- Minimum investments apply (usually £3,000 or £5,000)
- Managers must invest at least 70% of proceeds within 3 years
- Only genuinely small companies with assets less than £15million before issue are eligible
- Companies must have no more than 250 full time employees at the time of investment
- No more than £2million may be raised via VCTs in the 12 months ending on the date of the relevant investment
- The company's shares should not be listed on a recognised stock exchange
- Certain sectors are excluded, such as nursing homes, hotels, and banking
If the VCT rules match you investment criteria, see below for a range of the VCTs available and click for more information and to find out how to apply:
Generalist VCTS
These VCTs typically invest in unquoted companies in the hope of making a profit when the company is sold or floated.
| Minimum Investment | Amount Raising | Amount Raised† | Initial Charge* | More Info | |
|---|---|---|---|---|---|
 Proven Growth and Income VCT | £5,000 | £20m | £0m | 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.
| Minimum Investment | Amount Raising | Amount Raised† | Initial Charge* | More Info | |
|---|---|---|---|---|---|
 Amati VCT & VCT 2 | £3,000 | £7m | £3m | More Info > | |
 Octopus AIM VCT & AIM VCT 2 | £5,000 | £20m | £10m | 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.
| Minimum Investment | Amount Raising | Amount Raised† | Initial Charge* | More Info | |
|---|---|---|---|---|---|
 PUMA VCT 11 | £5,000 | £30m | £0m | 3.00% | More Info > |
 Downing THREE VCT | £5,000 | £25m | £13.5m | 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
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.