New video: Five things to consider when investing in VCTs

Archived article

Archived article: please remember tax and investment rules and circumstances can change over time. This article reflects our views at the time of publication.

The first time I invested in a Venture Capital Trust (VCT), I had been making my own investments for a couple of decades, and I worked in the industry – but it still felt a little like stepping into the unknown.

I was attracted by the income tax relief (up to 30%) and the potential for tax-free dividends. VCTs invest in young companies and the level of information available was nowhere near what I was used to for more mainstream investments. 

Wealth Club is helping change that. In that vein, I had a chat with our Investment Manager, Nick Hyett to discuss the five things to consider when investing in VCTs – you might find it interesting, whether you’re new to VCTs or a long-time investor like myself.

In this video, we answer questions such as: How are VCTs different from a more mainstream equity fund – say, one investing in FTSE100 companies? What sort of portfolio might someone just starting out investing in VCTs consider? What might a more seasoned VCT investor consider?

Watch the video now. 

Important: This video is for experienced investors. It represents the views of the interviewees and is not a personal recommendation to invest or to buy, sell or hold shares in any company. VCT investments are for the long-term, high risk and illiquid: you could lose the money you invest. Past performance is not a guide to the future and dividends are variable and not guaranteed. Tax rules can change and benefits depend on circumstances.

5 Things to Consider When Investing in Venture Capital Trusts (VCTs)


Wealth Club aims to make it easier for experienced investors to find information on – and apply for – investments. You should base your investment decision on the offer documents and ensure you have read and fully understand them before investing. The information on this webpage is a marketing communication. It is not advice or a personal or research recommendation to buy any of the investments mentioned, nor does it include any opinion as to the present or future value or price of these investments. It does not satisfy legal requirements promoting investment research independence and is thus not subject to prohibitions on dealing ahead of its dissemination. 

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