Venture Capital Trusts (VCTs)

Step 1:

To apply you need a Trading Account.

Step 2:

As VCTs are classified as a Complex Instrument you must first complete our online appropriateness assessment, which can be found when you log in to your Trading Account. Choose the ‘personal details and preferences’ option from the ‘account’ tab, then select ‘Appropriateness Assessment Form’ from the ‘Account Information’ section. On successful completion we will be able to process your application. The assessment only needs to be completed once.

Step 3:

Please follow the instructions on the application form of your chosen VCT and post to the following address, if applicable enclosing a cheque for the amount you wish to subscribe made payable to the VCT manager/provider:

Corporate Actions Department
1st Floor
201 Deansgate
Manchester
M3 3NW

Please write your interactive investor account number at the top of your application form

We charge a flat fee of £30 per application – please ensure there are sufficient funds in your Trading Account to cover this fee. If insufficient funds are available the application process may be delayed.

In order to receive the tax benefits that VCTs can offer the application must be in your own named account.

Your application must be received by us a minimum of 3 working days prior to the VCT application closing date. This includes any early bird offer specified dates.

Important tax year end deadline:
Please note, application forms for the 2021/22 tax year must be received by Wednesday 30 March.

Step 4

We will finalise your application and send to the company, and where possible you will receive your new VCT shares electronically in your trading account as default. If you would prefer to receive a share certificate, please let us know along with your application. If you choose to reinvest your VCT dividends with the VCT manager/provider, you will receive a share certificate.

Step 1:

To apply you need a Trading Account.

Step 2:

As VCTs are classified as a Complex Instrument you must first complete our online appropriateness assessment, which can be found when you log in to your Trading Account. Choose the ‘personal details and preferences’ option from the ‘account’ tab, then select ‘Appropriateness Assessment Form’ from the ‘Account Information’ section. On successful completion we will be able to process your application. The assessment only needs to be completed once.

Step 3:

Send us an application form request, using the secure message function within your account. To do this:

1. Log in, select the "account" menu and the "secure messages" option. Then click the "Compose" button followed by the "Continue to new message" link.
2. In the "New message subject" section, enter the name of the VCT offering
3. Scroll and select "Venture Capital Trusts" as the message topic
4. Make sure your Trading Account is the related account
5. In the message field include the amount(s) you intend to invest
6. Click Send

Step 4

We will respond to your secure message with a unique link, which gives you access to your personal application form, and a password.

Please follow the instructions on the application form. When completing and submitting your application, please take into account the VCT manager's deadlines, including early bird offer specified dates.

In order to receive the tax benefits that VCTs can offer the application must be in your own named account.

We charge a flat fee of £30 per application – please ensure there are sufficient funds in your Trading Account to cover this fee.

On successful submission, an acknowledgement of receipt of application email will be sent to both the investor and interactive investor.

Investors need to be aware of when they buy and sell VCT shares in order to attract and keep the tax advantages. The income tax relief of 30% on investments of up to £200,000 in new VCT shares must be repaid if the VCT shares are not held for five years. Those who want to sell VCT shares will need to have their VCT share certificate to hand. 

Those who have lost their share certificate should firstly contact the VCT provider who issued the VCT share certificate and VCT tax certificate. The latter enables individuals to claim VCT tax relief. 

No, AIM VCTs do not qualify for inheritance tax relief. However, private investors can create their own portfolio of Aim shares qualifying for business property relief, which can be passed on free of inheritance tax after they have been held for two years and provided they are still owned at death. Aim shares can be held in a stocks and shares ISA. 

VCT popularity has tended to trump that of other products such as enterprise investment schemes (EIS). This is because the small companies VCTs back while they are at an early stage in their development are, nevertheless, more established than the start-up businesses held in EIS schemes. Investors who invest in EIS schemes for a minimum period of three years benefit from 30% tax relief. But one key difference between VCTs and EIS is that investments in an EIS-qualifying company can help mitigate against inheritance tax, provided the investment is held for two years and at the time of death. 

The companies held in seed enterprise investment scheme (SEIS) are even smaller than those held in EIS in schemes in terms of turnover and number of employees. As a trade-off for the higher risks involved, investors are offered an even bigger tax break. By committing cash to SEIS for three years, the investor benefits from a 50% income tax break.