Advice on VCT’s
Venture Capital Trusts (VCTs) were introduced by the government in 1995 as another way to incentivise investment is smaller UK business. They provide 30% of the initial investment as a credit against your income tax bill and tax-free dividends (the income from shares). VCTs can pay higher than market average dividends and so the tax-free dividend can be attractive to higher-rate taxpayers, in particular those who are limited in the amount they can pay into pensions.
VCTs are listed on the stock market themselves but can be hard to sell as there isn’t much of a secondary market. There are specialist brokers who can sell them and sometimes VCT managers will offer to buy-back shares from investors if demand is high enough.
Advice on VCTs is available to Altor clients in our Core Service.
Nothing on this website or its links constitutes a personal recommendation; the information contained is designed to be informative but not to be relied upon as individual circumstances could affect the relevance of this guidance.