Venture Capital Trusts ("VCTs") are tax-efficient investment companies listed on the London Stock Exchange and were introduced by the Government in 1995 to incentivise investment into smaller UK companies.
Since introduction in 1995, 166 VCTs have been established and have collectively raised £4.26 billion.*
VCTs typically invest in a portfolio of about 20-30 companies to provide the investor with a degree of diversification.
VCTs offer tax incentives which are subject to holding VCT shares for a minimum period, which is currently 5 years. These incentives, which are designed to offset the risks of investing in smaller companies, include:
• Investors can claim back 30% of their VCT subscription against income tax.
• All dividends and capital appreciation are tax free.
• Tax free capital gains on the sale of VCT shares.
Learn more about the tax incentives here.
Investors must note the risks inherent to investing in VCTs.
Foresight always recommends private investors to always seek advice from an Independent Financial Adviser (IFA) before making any decision to invest in a Foresight product. IFAs have an important role to play for many people when considering their investment options. To find an IFA near you, visit www.unbiased.co.uk.
* Figures for period up to and including 5 April 2011.