Help small companies grow, save income tax and receive tax-free dividends
A Venture Capital Trust (VCT) is a publicly listed company run by a fund manager. It aims to make money by investing in small, unquoted, entrepreneurial companies and helping them grow.
When you as a private investor buy shares in a VCT, you get access to a portfolio of small companies. The government is keen for experienced investors
to invest in this kind of company, because they create jobs and support
economic growth. However, investing in small businesses is risky. To help
compensate for this, the government offers generous tax benefits:
Up to 30% tax relief – save up to £60,000 on your income tax bill when you invest in newly issued VCT shares
Tax-free dividends – £294 million paid out in 2018/19 alone
Tax-free growth – no CGT on gains
No need to declare dividends on your tax return
Generous allowance – invest up to £200,000 per tax year
Remember, tax rules can change and tax benefits depend on circumstances.
See all current offers below – you can read our review, download the offer documents and apply online. We also list VCT offers due to open this tax year – you can register your interest and we'll send you an alert as soon as the offer is live.
Diverse VCT portfolio with a focus on growth businesses, particularly in software and computer services. The acquisition of Elderstreet by Draper Esprit promises to enhance deal flow and provide the VCT with opportunities to invest in larger, more established businesses.
The Calculus VCT invests alongside the long-established Calculus EIS fund, which launched in 1999, offering a lower entry point for investors seeking Calculus’ approach to building a broadly diversified portfolio.
Hargreave Hale specialises in smaller companies investing. This AIM VCT has not raised funds since 2018-19 and intends to open a £20m offer for subscription in 2020-21.
Octopus AIM VCT and Octopus AIM VCT 2 (together the Octopus AIM VCTs) offer exposure to a well established portfolio of largely profitable AIM companies plus earlier-stage businesses from newer investments.
The UK's largest VCT has always been focused on earlier stage growth-oriented companies. It has over 70 companies across a wide range of sectors. The focus is on backing talented entrepreneurs. It has backed some notable winners in the past including Zoopla, SwiftKey and Graze.
Pembroke's manager, formerly Oakley Capital, is a long-established name in venture capital investing. This VCT has a distinctive investment strategy. Investments are focused on scalable consumer brands; ones which investors can walk down the high street and see.
This is Puma’s fourteenth VCT, the first with an evergreen focus. It aims to invest in scale-up opportunities among established, income-yielding growth capital companies.
Unicorn is a specialist smaller company fund manager. The manager looks for companies with strong cash flows and potential to pay and grow dividends over time. This is a large, well diversified VCT.
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