Venture Capital Trusts (VCTs)

VCTs are listed in the London Stock Exchange and provide finance for small, expanding companies with the aim of generating returns for investors. They're a tax-efficient way to invest in smaller companies but do involve a high degree of risk and many not be suitable for everyone. Advice should always be sought before investing.

In brief, investors can benefit from:

  • Up to 30% income tax relief, if they invest between £5,000 and £200,000 in any tax year (to retain this relief your client will need to keep theyr VCT shares for at least five years)
  • Tax-free dividends
  • No capital gains tax