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.
An established offer from a well regarded fund management house. This VCT invests in both AIM and unquoted companies, differentiating it from other AIM VCTs in our view. Read more…
Pembroke's manager, formerly Oakley Capital, is a long-established name in venture capital investing, with £4 billion under management. Pembroke VCT is focused on growth investing, typically backing consumer brands with premium pricing potential.
The Baronsmead VCTs are amongst the longest-standing and most diverse of all VCTs. They give investors access to a portfolio of more than 150 companies spread across legacy MBO investments, AIM-quoted companies and newer early-stage growth investments, as well as three Gresham House equity funds, and money market funds. Target dividend of 7% – not guaranteed.
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.
Downing FOUR VCT – AIM Shares is a newly created share class within Downing FOUR VCT. It will seek to invest in a portfolio of 15–20 AIM-quoted companies.
Downing FOUR Healthcare Shares, one of the three active share classes within the Downing FOUR VCT, seeks to invest in early and mid‐stage healthcare companies.
Downing FOUR Ventures Shares (previously known as Generalist) is one of the three active share classes within the Downing FOUR VCT. It seeks to invest in a portfolio of small, ambitious technology businesses.
A new share class of Foresight Solar & Technology VCT, part of the collaboration between Foresight Group and Williams Advanced Engineering, seeking to invest in early-stage high-growth technology businesses
Maven Capital Partners is a highly regarded fund manager, known for its strong regional presence. The Maven VCTs are now a blend of more mature management buyout investments, early-stage high-growth private companies, AIM-quoted companies, private equity investment trusts and cash or cash equivalents.
Mobeus is a private equity house with a strong track record of VCT management. Its four VCTs once predominantly invested in MBOs; since the VCT rule change in 2015 Mobeus has 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.
The three Northern VCTs are among the longest-running and have built up a strong investor following over the years. Since December 2019 the management has been under the ownership of Mercia Asset Management plc.
With assets of more than £170 million, Octopus Apollo is one of the largest VCTs available. Investors get exposure to a portfolio of largely revenue-generating fast-growing companies, with a bias towards technology.
The UK's largest VCT has always been focused on earlier stage growth-oriented companies. The focus is on backing talented entrepreneurs. It has backed some notable winners in the past including Zoopla, SwiftKey and Graze.
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.
Amati is a highly regarded fund manager with a track record of investing in smaller listed businesses. For investors willing to tolerate the potential volatility of AIM, this could be an offer to consider.
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.
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 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 manager looks for companies with strong cash flows and potential to pay and grow dividends over time. This is a large, well diversified VCT.
In June 2021, the UK crossed a new milestone. It is now home to 100 tech unicorns – private tech companies valued above $1 billion – only the third country to achieve this, after the US ...
It is the ultimate objective and final hurdle for VCT and EIS fund managers: supporting their portfolio companies all the way through to a profitable exit to realise returns. Below we list eight recent exits from ...
In recent weeks we have seen increased demand for Venture Capital Trusts (VCTs). Since the start of February, £163.7 million has flowed into VCTs. This compares to £122 million in the equivalent period last tax year, ...
The investment strategy of Pembroke VCT – to back passionate entrepreneurs building premium consumer brands – differentiates it from the wider cohort of VCTs.The investment team tends to get directly involved in investee companies, often taking ...
