The table below shows the Venture Capital Trusts (VCTs) that are currently available, together with details of how much money each VCT has raised and our discount which is in the form of additional shares. As we are execution-only brokers, we reduce the cost of purchasing a VCT by rebating the majority of our commission to increase your investment.
VCT |
Type of VCT |
Fundraising Target |
Amount Raised |
Initial Charge |
Total Discount* |
Securities Note |
Closing Date 10/11 Tax Year |
| Acuity Environmental 1 & 2 |
Specialist |
£20m |
£5.0m |
5.5% |
3.0% |
Click Here |
|
| Bluehone AiM 2 |
AiM |
£2.175m |
£0.1m |
5.0% |
2.0% |
Click Here |
27/08/10 |
| British Smaller Technology Companies 2 |
Generalist |
£1.286m |
£0.9m |
5.5% |
2.25% |
Click Here |
27/08/10 |
Downing Absolute Income 1
(small top-up)
|
Generalist |
£0.7m |
£0.2m |
5.5% |
2.5% |
Click Here |
27/08/10 |
| Hargreave Hale AiM 1 & 2 |
AiM |
£10m |
£1.6m |
5.0% |
2.25% |
Click Here |
30/07/10 |
| Noble AiM |
AiM |
£14m |
£3.5m |
5.0% |
3.0% |
Click Here |
12/08/10 |
| Octopus Titan 1 & 2 |
Generalist |
£3m |
£0.5m |
5.5% |
2.5% |
Click Here |
|
| Octopus Titan 4 |
Generalist |
£25m |
£21.0m |
5.5% |
2.5% |
Click Here |
31/08/10 |
| ProVen D Share Linked Offer |
Generalist |
£20m |
£5.3m |
5.5% |
4.0% |
Click Here |
15/10/10 |
*includes CFS discount and any extra discount from the VCT.
Updated: 30/07/10
Please note the VCT Closing Dates are subject to change depending on amounts raised.
VCTs funds raised (2009/10 tax year)
A total of £340m was raised in VCTs last tax year, with Generalist VCTs raising £135m, Planned Exits £197m and AIM VCTs just £8m.
This total is more than double the amount raised in the 2008/09 tax year (£158m) and substantially more than was raised in the 2007/08 tax year (£219m). Chelsea Financial Services expects more than £400m will be raised this year due to a number of factors, but mainly as the tax benefits of VCTs remain the same other tax based products such as pensions suffer restrictions on the level of subscription and the level of tax relief available. In addition, the introduction of a 50% rate of income tax for those earning in excess of £150,000 will encourage investors to perhaps look more closely at tax-efficient investments such as VCTs.
Just to recap, here is a brief summary of the benefits available upon investing in a VCT for the 2010/11 tax year:
- Income Tax rebate of 30% (#)
- Exemption from tax on dividends
- Exemption from Capital Gains Tax on profits made from selling of VCT shares
(#) The 30% income tax rebate is available not just to higher rate taxpayers but also to basic rate taxpayers, so long as you have paid as much tax as you are claiming a rebate for. Individuals aged 18 and over who subscribe for new ordinary shares in VCTs are entitled to claim income tax relief at 30% subject to the amount subscribed in any one year not exceeding £200,000. This tax relief will be clawed back by HMRC should the investment be sold within 5 years of making the investment.
Please note the tax relief should be viewed as a bonus to purchasing the underlying investment and not the prime reason for investing in a VCT. A VCT is given provisional approval by HMRC provided the 70% requirements are met within 3 years and other conditions are duly met. If the trust fails to meet the conditions within these time periods, provisional approval would be withdrawn.
Please remember that the value of VCT investments can fall as well as rise and you may not get back the full amount invested. Furthermore, it would be unwise to purchase a VCT purely for the upfront tax relief and try to sell immediately after the minimum five year holding period. It usually takes three years to invest the monies raised and create a portfolio of qualifying investments, which are usually unquoted companies that don't lend themselves to short term horizons. VCTs should be considered at least 6-10 year investments. In addition, liquidity of these investments is poor, with the secondary market for VCT shares notoriously illiquid.
