Venture Capital Trusts

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 invest in a basket of small companies. This is riskier than investing in established ones, but can offer significant rewards. Not only might you invest in tomorrow’s Google, but you also receive valuable benefits along the way: 

  • 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 – a record £240 million paid in 2014/2015 alone
  • Tax-free growth
  • Generous allowance – invest up to £200,000 per tax year
  • No need to declare dividends on your tax return
  • Discount on VCT initial charge when you invest via Wealth Club

Read more on VCT tax savings

VCTs are currently the only investments that offer tax breaks both when you put the money in and when you receive an income. 

Indeed, they are becoming increasingly popular with investors, especially those with a large income tax liability or who are seeking to generate a tax-efficient income. 

VCTs raised £542 million in the 2016/2017 tax year – the second-highest level ever recorded. VCTs are not open ended. Offers are limited.

How to invest in VCTs

To invest in a VCT, first download and read carefully the VCT application pack. Then complete the application form and return it to Wealth Club with your cheque payable to the VCT provider. It can take several months to receive your share certificate as the provider may only issue shares once or twice per tax year.

The prospectus will contain further details. Be sure to understand the risks and commitments before you invest. You can view our featured offers below, or browse all our current VCT offers here.

Featured VCT offers

Our favourite VCT offers: opportunities with genuine investment merit above and beyond the tax benefits and whose managers we believe can deliver returns to investors. Read more about featured offers.

View all offers
Product Sort by value Targeted Dividend Sort by value Initial Charge Sort by value Minimum investment Sort by value Deadline Sort by value WealthClub Saving Sort by value Downloads  
Our choice Mobeus VCTs

Mobeus is a private equity house with a strong track record of VCT management. In the past its four VCTs have predominantly invested in MBOs; however since the VCT rule change in 2015 they have built up an experienced growth investing team, led by Trevor Hope (formerly of the ProVen VCTs). Mobeus is good at structuring deals and focuses on mid-stage growth companies; investors will continue to be exposed to the MBO portfolio although this will be replaced over time.

 4p-6p per share 3.25% (1% early bird discount before 3 November) £6,000 3 Nov 2017 for early bird saving 1.75%
Our choice Northern VCTs

Managed by NVM Private Equity in Newcastle, the three Northern VCTs are among the longest-running Venture Capital Trusts and have built up a strong investor following over the years, gaining a reputation for share offers that quickly sell out. The managers invest in a broad spread of businesses throughout the whole of the UK and have made 11 new VCT-qualifying investments since the rule changes in 2015. Investors will also be exposed to legacy assets consisting mainly of MBO investments.

 Discretionary 4% £6,000 None 2.25%  
Our choice Octopus Titan VCT

Recent rule changes should have little impact on this VCT as it has always been focused on earlier stage growth-oriented companies. This huge VCT, at £425 million in size, has around 55 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.

 5p per share 5.5% £3,000 14 Nov 2017 for early bird saving 4.5%
Our choice Unicorn AIM VCT

Unicorn is a specialist smaller company fund manager. This VCT has been a consistent long-term performer. The managers look for companies with strong cash flows and potential to pay and grow dividends over time. This is a large, well-diversified VCT and is worthy of consideration.

 Discretionary 5.5% £2,000 17 Nov 2017 3.0%

More about Venture Capital Trusts

Tax Savings

Essential Facts

How To Invest

VCT Offers

News about Venture Capital Trusts. Read all

Review: Northern VCTs

22 September 2017

The Northern VCTs are now open. Northern has an extremely loyal base of shareholders. Its previous offer in February of this year sold out in under 48 hours. The three VCTs are now raising up to ...

Review: Albion VCTs

15 September 2017

This £32 million top-up offer is an opportunity to invest in five of Albion’s VCTs: Albion Development, Albion Enterprise, Albion Technology & General, Crown Place and Kings Arms Yard. Each VCT has a minimum of £1,200 ...

Review: Mobeus VCTs

8 September 2017

An 18-year track record, exceptional dividends and an enviable reputation. Mobeus VCTs are a perennial favourite of seasoned VCT investors and we think this new offer will be popular.As this is a top-up offer, investors will ...

Review: Octopus Titan VCT

7 September 2017

Last tax year a staggering £120 million was invested in Octopus Titan VCT. Now Octopus Investments has announced an even more ambitious fundraising target: up to £200 million (£120 million, with a possible over-allotment facility of ...