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.
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.
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.
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.
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
With assets of more than £140 million, Octopus Apollo is one of the largest VCTs available. Investors get exposure to a portfolio of new growth-capital investments as well as legacy MBO and energy investments.
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.
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.
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.
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…
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 80 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.
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.
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 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, ...
These are testing times – for people, economies and stock markets. The impact of the ever-changing current situation on stock markets around the world is well documented. But what about VCTs?In our recent article, we looked ...
We are living through unprecedented times. The outbreak of COVID-19 is having a material impact on everyone’s lives and on financial markets. One question many of our investors are asking is how this is being reflected ...
Pembroke is placing the safety and welfare of its colleagues, investors, and all other stakeholders as its highest priority and is taking all necessary steps to protect individuals, ensure business continuity and provide support to our ...
