Venture Capital Trusts (VCT)
 
VCTs provide capital finance for small expanding companies
with the aim of making capital gains for investors.
They are a tax efficient way to invest larger sums of money
and are aimed at medium to large net worth private investors.
First introduced in the Finance Act 1995.
  
Investors with larger portfolios can invest up to £200,000.
VCT shares need only be held for
five years to retain the initial tax reliefs, but to obtain
the full benefits of the investment vehicle,
the shares should be held for as long as possible.
 
Most VCTs aim to invest the majority of assets in qualifying companies,
80% of which are established companies or management buyouts.
  
  
1. Initial Income Tax Relief of up to 30%.
This initial income tax relief will be withdrawn if the investor does not hold
the shares for a minimum period of 5 years for shares issued thereafter.
 
2. VCT dividends (including capital distributions of realised gains
on investments) are not subject to income tax.
 
3. Tax free capital gains on disposal of VCT shares,
whenever the disposal occurs.
Sources of new VCT shares

Please be aware this information can and does change and may be out of date so please do not rely on it.