VCT's or Venture Capital Trusts are a highly tax efficient closed end collective investment scheme aimed at providing funding for small companies hoping to expand.
They are listed on the London Stock Exchange (LSE) and were introduced in 1995 to encourage investment into UK start ups. They provide immediate tax relief and a capital gains tax deferral.
These smaller companies have been described as the 'lifeblood of the UK economy', which is why the UK government offers serious tax incentives aimed at attracting investors. These incentives include:
- Up to 30% income tax relief on the amount subscribed*
- Tax-free dividends
- Tax-free capital gains on the disposal of shares
Smaller companies do carry an element of risk, which is why it is important for us to find you a VCT and manager with skill and expertise in this highly specialised area.
Like EIS’s they are subject to complex rules and regulations which would need to be fully explained and understood before entering into this type of arrangement.
At Romilly we would be happy to advise you of the benefits and risks associated with this type of investment.
To discuss investment options with one of our senior financial planners, call 02920 41 51 00
*Up to a maximum of £200,000 per tax year and provided the shares are held for a minimum of five years