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 basket of small companies. The government is keen for experienced investors
to invest in this kind of company because they typically 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 – a record £398 million paid in 2017/18 alone
Tax-free growth
Generous allowance – invest up to £200,000 per tax year
No need to declare dividends on your tax return
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.
Maven is one of the premier VCT managers. It manages six VCTs alongside its private equity and debt financing activities. Maven has particular strength in the UK regions, with 12 offices around the country.
The three Northern VCTs are among the longest-running and have built up a strong investor following over the years. Last year's offer sold out in 11 days. The current offer is also expected to be popular. Applications are processed on a first come, first served basis – the quickest way to apply is online, through Wealth Club.
The UK's largest VCT has always been focused on earlier stage growth-oriented companies. It has around 65 portfolio 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.
Amati is a highly regarded fund manager with a track record of investing in smaller listed businesses. For investors willing to tolerate potential volatility of AIM, this is an offer to consider.
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.
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.
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.
Investors will buy into a VCT with over £130 million of assets. Stability of capital is seen as more important than high growth. Investments in healthcare and renewable energy are key aspects of this portfolio.
An established VCT offering new investors a diverse portfolio of maturing companies alongside new investments. Beringea has a solid track record of investing in companies with growth potential, particularly in digital media and consumer products, and supporting them until a profitable exit can be achieved.
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 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.
Albion Capital is one of the longest established VCT managers. The VCTs have a broad spread of underlying investments in earlier-stage technology, more mature asset-based businesses, renewable energy, healthcare and education, with a credible team managing these.
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 focuses on mid-stage growth companies; investors will continue to be exposed to the MBO portfolio although this will be replaced over time.
When you look at the current offers, Pembroke VCT stands out: it is markedly different from – but potentially complementary to – most others.It is a relatively new VCT (originally set up in 2013) and from ...
Nobody could ever accuse Octopus Titan VCT of doing things by halves. At £825 million (23 October 2019), it’s already the largest VCT by some degree. If the current offer is fully subscribed, it could potentially ...
Some managers have an extremely loyal following amongst VCT investors. Mobeus is an example. The current offer raised £4 million within two working days of it opening. Two years ago the four Mobeus VCTs raised £80 ...
If you were to sum up the Albion VCTs in a few words, ‘variety’ or ‘broad appeal’ could be likely candidates. Five of the six Albion VCTs are currently fundraising and the portfolio of each includes ...
