What are VCTs?
Venture Capital Trusts (VCTs) started life in 1995. They were launched to encourage investment in early stage companies by offering attractive tax breaks to investors, in the form of 30% initial tax relief for investments up to £200,000 a year and tax-free dividends.
VCTs invest in young entrepreneurial companies that are unquoted, with a relatively recent rule change requiring VCTs to invest in businesses that are typically less than seven years old. As such, these underlying investments carry considerably higher risk than do listed businesses on the London Stock Exchange. In return for taking that risk, VCT shareholders get a variety of generous tax breaks.
VCTs advantages and disadvantages
Benefits and risks associated with VCTs investing
VCTs are highly tax-efficient, offering 30% income tax relief as long as the shares are held for five years, plus tax-free dividends and no capital gains tax on profits on the disposal of VCT shares. Investors can put up to £200,000 into VCTs each year.
VCTs attract high earners (who should also be sophisticated investors) with few other options: they have reached their limits for pension contributions and used up their dividend tax allowance. As a general rule of thumb, if you pay 40% or 45% tax and have maxed out your pension and ISA, then VCTs are worth considering.
The tax incentives are attractive, but it is important to remember the tax tail should never wag the investment dog. Performance overall has been creditable for VCTs, albeit some way behind mainstream equity markets. Over 10 years, the average generalist VCT has produced a share price total return of 123% (as at 17 July 2020), according to the Association of Investment Companies. This compares with 149% for the average UK all-companies investment trust.
Over the past couple of years, VCTs have become riskier propositions as they are now required to invest in earlier-stage companies, mainly those that have been trading for less than seven years. In addition, the investable universe for VCTs has become more limited, with management buyouts excluded and investments in asset-backed firms restricted. One the one hand investing in younger businesses could lead to high returns, but at the same time risk is increased.
It is important to point out that VCTs are complex products and are only suitable for sophisticated investors. Please ensure you understand the risks involved. If you are unsure about the suitability of any investment please seek financial advice.
Advantages
- Investors can receive income tax relief of 30% on up to £200,000 invested in newly issued shares held for at least five years
- Dividends paid out by VCTs are tax-free
- All capital gains on sale of shares are also tax-free
Disadvantages
- The underlying investments in VCTs are high-risk and have become riskier over the past couple of years, due to rule changes
- Charges levied by VCT provider tend to be high – around 1.75% to 2% a year is typical. In contrast funds and investment trusts tend to cost 0.85% to 1% a year.
- Tax benefits for VCT investors could at some point be taken away or changed
Types of VCTs
Generalist VCTs
These VCTs invest in a wide range of companies in different sectors and stages of development.
AIM VCTs
As the name suggests they only invest in companies listed, or about to become listed, on the Alternative Investment Market (AIM).
Specialist VCTs
Tend to focus their investment expertise on one particular sector, e.g. Healthcare.
Limited Life VCTs
Set out on a 5+ year plan and will wind up the VCT at the end of this period.
VCTs Tax Rules and Benefits
Venture capital trusts (VCTs) are collective funds that take stakes in small companies that investors would generally regard as high-risk. VCT investors get a variety of generous tax breaks in return for committing their cash to those high-risk investments. These include:
- upfront income tax relief of 30% on investments of up to £200,000 in new VCT shares
- tax-free dividends
- tax-free capital growth
Are VCTs right for me?
Investors should feel comfortable that they meet the following criteria:
- High net worth and sophisticated investors who are UK residents.
- Investors who have a sufficient income tax liability to reclaim income tax relief at 30% of the amount subscribed.
- Investors who have realised a capital gain that would attract Capital Gains Tax.
- Investors who will not need access to their capital for at least five years and are comfortable with higher risk investments.
Why choose ii?
- We charge a market-leading one-off fee of £30 (inc VAT) to process your VCT application.
- Most VCT Managers offer broker discounts, which we will reinvest fully for you in new shares.
- Unlike some brokers we credit all the trail income we receive from your VCT investments as cash in your account.
Current VCTs Offers
Here we list current VCT offers available for investment through interactive investor. Before investing, please ensure you have read and understood the key documents and 'how to apply through ii' information below.
Albion VCTs Offering
| Legal name(s) | Albion Enterprise VCT plc (AAEV) Albion Technology & General VCT plc (AATG) Albion Crown VCT plc (CRWN) |
| Type | Generalist |
| Minimum investment | £6,000 |
| Amount raising | £60m (£20m per Company) with a £30m over-allotment facility (£10m per Company) |
| Initial charge | 3% |
| Total discount via ii | 0.5% (1.0% for existing shareholders) until first £10m raised. 0% thereafter. |
| Net initial charge | 2.5% (2.0% for existing shareholders) until first £10m raised. 3.0% thereafter. |
Important note: The early bird capacity of £10m has been reached.
How to apply: This Offer's application process is online only via a service provided by the Company's receiving agent and registrar, The City Partnership (UK) Ltd. To apply through us please follow the 'Online application form' process outlined below.
Baronsmead VCTs Offering
| Legal name(s) | Baronsmead Venture Trust plc (BVT) Baronsmead Second Venture Trust plc (BSVT) |
| Type | Generalist |
| Minimum investment | £5,000 |
| Amount raising | £30m, with a £20m over-allotment facility |
| Initial charge | 4.5% |
| Total discount via ii | 2.0% (2.25% for existing shareholders) until the first £7.5m raised for BVT and £10m raised for BSVT. 1.5% thereafter. |
| Net initial charge | 2.5% (2.25% for existing shareholders) until the first £7.5m raised for BVT and £10m raised for BSVT. 3.0% thereafter. |
How to apply: This Offer's application process is online only via a service provided by the Company's receiving agent and registrar, The City Partnership (UK) Ltd. To apply through us please follow the 'Online application form' process outlined below.
Key documents
- View 'Baronsmead VCTs Prospectus' (PDF)
- View 'Baronsmead Venture Trust KID' (PDF)
- View 'Baronsmead Venture Trust Cost Disclosure' (PDF)
- View 'Baronsmead Second Venture Trust KID' (PDF)
- View 'Baronsmead Second Venture Trust Cost Disclosure' (PDF)
- View 'Baronsmead Venture Trust Factsheet' (PDF)
- View 'Baronsmead Second Venture Trust Factsheet' (PDF)
- View 'Baronsmead VCTs Investor Guide' (PDF)
Blackfinch Spring VCT Offering
| Legal name(s) | Blackfinch Spring VCT plc |
| Type | Generalist |
| Minimum investment | £3,000 |
| Amount raising | £20m with £20m over-allotment facility |
| Initial charge | 5.5% |
| Total discount via ii | 4.0% (5.0% for existing Blackfinch investors) until 15 December 2025. 3.0% (4.0% for existing Blackfinch investors) thereafter. |
| Net initial charge | 1.5% (0.5% for existing Blackfinch investors) until 15 December 2025. 2.5% (1.5% for existing Blackfinch investors) thereafter. |
How to apply: This Offer's application process requires you to follow the ‘Paper application form’ steps outlined in the ‘How to apply through interactive investor’ section below.
British Smaller Companies VCT Offering
| Legal name(s) | British Smaller Companies VCT plc British Smaller Companies VCT2 plc |
| Type | Generalist |
| Minimum investment | £6,000 |
| Amount raising | £60m, with a £25m over-allotment facility |
| Initial charge | 5.0% |
| Total discount via ii | 2.125% for the first £25m raised. 2.0% thereafter. |
| Net initial charge | 2.875% for the first £25m raised. 3.0% thereafter. |
How to apply: This Offer's application process is online only via a service provided by the Company's receiving agent and registrar, The City Partnership (UK) Ltd. To apply through us please follow the 'Online application form' process outlined below.
Calculus VCT Offering
| Legal name(s) | Calculus VCT plc |
| Type | Generalist |
| Minimum investment | £5,000 |
| Amount raising | £10m with £10m over-allotment facility |
| Initial charge | 5.0% |
| Total discount via ii | 4.0% (4.5% for existing Calculus VCT shareholders) until 16 December 2025 or the first £2m raised, whichever is soonest. Then 3.5% (4.0% for existing Calculus VCT shareholders) until 17 February 2026 or a further £3m raised, whichever is soonest. 2.0% (2.5% for existing Calculus VCT shareholders) thereafter. |
| Net initial charge | 1.0% (0.5% for existing Calculus VCT shareholders) until 16 December 2025 or the first £2m raised, whichever is soonest. Then 1.5% (1.0% for existing Calculus VCT shareholders) until 17 February 2026 or a further £3m raised, whichever is soonest. 3.0% (2.5% for existing Calculus VCT shareholders) thereafter. |
How to apply: This Offer's application process requires you to follow the ‘Paper application form’ steps outlined in the ‘How to apply through interactive investor’ section below.
Foresight Technology FWT Shares Offering
| Legal name(s) | Foresight Technology VCT plc FWT shares of 1p each in the Company ("FWT Shares") |
| Type | Generalist |
| Minimum investment | £5,000 |
| Amount raising | £15m with £10m over-allotment facility |
| Initial charge | 5.5% |
| Total discount via ii | 4.5% (5.0% for existing Foresight VCT investor) until 31 December 2025. 3.0% (3.5% for existing Foresight VCT investors) thereafter |
| Net initial charge | 1.0% (0.5% for existing Foresight VCT investor) until 31 December 2025. 2.5% (2.0% for existing Foresight VCT investors) thereafter |
How to apply: This Offer's application process requires you to follow the ‘Paper application form’ steps outlined in the ‘How to apply through interactive investor’ section below.
Foresight Ventures VCT Offering
| Legal name(s) | Foresight Ventures VCT plc (merger of the former Thames Ventures VCT 1 Plc and Thames Ventures VCT 2 Plc) |
| Type | Generalist |
| Minimum investment | £5,000 |
| Amount raising | £10m with £5m over-allotment facility |
| Initial charge | 5.5% |
| Total discount via ii | 4.5% (5.0% for existing Foresight VCT investor) until 31 December 2025. 3.0% (3.5% for existing Foresight VCT investors) thereafter |
| Net initial charge | 1.0% (0.5% for existing Foresight VCT investor) until 31 December 2025. 2.5% (2.0% for existing Foresight VCT investors) thereafter |
How to apply: This Offer's application process is online only via a service provided by the Company's receiving agent and registrar, The City Partnership (UK) Ltd. To apply through us please follow the 'Online application form' process outlined below.
Guinness VCT Offering
| Legal name(s) | Guinness VCT plc |
| Type | Generalist |
| Minimum investment | £5,000 |
| Amount raising | £10m with £5m over-allotment facility |
| Initial charge | 5.5% |
| Total discount via ii | 5.5% until 31 October 2025. 4.5% (5.5% for existing Guinness VCT investors) until 31 December 2025. 3.5% (4.5% for existing Guinness VCT investors) until 31 January 2026. 2.5% (3.5% for existing Guinness VCT investors) thereafter. |
| Net initial charge | 0% until 31 October 2025. 1.0% (0% for existing Guinness VCT investors) until 31 December 2025. 2.0% (1.0% for existing Guinness VCT investors) until 31 January 2026. 3.0% (2.0% for existing Guinness VCT investors) thereafter. |
How to apply: This Offer's application process is online only via a service provided by the Company's receiving agent and registrar, The City Partnership (UK) Ltd. To apply through us please follow the 'Online application form' process outlined below.
Maven VCTs Offering
| Legal name(s) | Maven Income & Growth VCT plc Maven Income & Growth VCT 3 plc Maven Income & Growth VCT 4 plc Maven Income & Growth VCT 5 plc |
| Type | Generalist |
| Minimum investment | £5,000 |
| Amount raising | £50m (£12.5m in each Company, including an over-allotment facility of up to £5m in each Company) |
| Initial charge | 5.5% |
| Total discount via ii | 4.25% (4.5% for existing shareholders) until 6 February 2026. 3.0% thereafter. |
| Net initial charge | 1.25% (1.0% for existing shareholders) until 6 February 2026. 2.5% thereafter. |
How to apply: This Offer's application process is online only via a service provided by the Company's receiving agent and registrar, The City Partnership (UK) Ltd. To apply through us please follow the 'Online application form' process outlined below.
Key documents
- View 'Maven I&G VCT Prospectus' (PDF)
- View 'Maven I&G VCT 1 KID' (PDF)
- View 'Maven I&G VCT 1 Cost Disclosure' (PDF)
- View 'Maven I&G VCT 3 KID' (PDF)
- View 'Maven I&G VCT 3 Cost Disclosure' (PDF)
- View 'Maven I&G VCT 4 KID' (PDF)
- View 'Maven I&G VCT 4 Cost Disclosure' (PDF)
- View 'Maven I&G VCT 5 KID' (PDF)
- View 'Maven I&G VCT 5 Cost Disclosure' (PDF)
- View 'Maven I&G VCT Investor Brochure' (PDF)
Molten Ventures VCT Offering
| Legal name(s) | Molten Ventures VCT plc (formerly Draper Esprit VCT) |
| Type | Generalist |
| Minimum investment | £6,000 |
| Amount raising | £10m with £20m over-allotment facility |
| Initial charge | 5.5% |
| Total discount via ii | 3.75% until 31 October 2025. 3.5% until 30 November 2025. 3.25% until 31 December 2025. 3.0% until 31 January 2026. 2.75% until 28 February 2026. 2.5% thereafter. |
| Net initial charge | 1.75% until 31 October 2025. 2.0% until 30 November 2025. 2.25% until 31 December 2025. 2.50% until 31 January 2026. 2.75% until 28 February 2026. 3.0% thereafter. |
How to apply: This Offer's application process is online only via a service provided by the Company's receiving agent and registrar, The City Partnership (UK) Ltd. To apply through us please follow the 'Online application form' process outlined below.
Northern VCTs Offering
| Legal name(s) | Northern Venture Trust PLC (NVT) Northern 2 VCT PLC plc (N2VCT) Northern 3 VCT PLC plc (N3VCT) |
| Type | Generalist |
| Minimum investment | £6,000 |
| Amount raising | £35m (£14m in each of NVT and N3VCT, and up to £7 in N2VCT) with £15m over-allotment facility (£6m in each of NVT and N3VCT, and up to £3 in N2VCT) |
| Initial charge | 5.5% |
| Total discount via ii | 2.5% (3.0% for existing shareholders) |
| Net initial charge | 2.5% (2.0% for existing shareholders) |
How to apply: This Offer's application process is online only via a service provided by the Company's receiving agent and registrar, The City Partnership (UK) Ltd. To apply through us please follow the 'Online application form' process outlined below.
Key documents
- View 'Northern VCTs Prospectus' (PDF)
- View 'Northern Venture Trust KID' (PDF)
- View 'Northern Venture Trust Cost Disclosure' (PDF)
- View 'Northern 2 VCT KID' (PDF)
- View 'Northern 2 VCT Cost Disclosure' (PDF)
- View 'Northern 3 VCT KID' (PDF)
- View 'Northern 3 VCT Cost Disclosure' (PDF)
- View 'Northern VCTs Brochure' (PDF)
Octopus Apollo VCT Offering
| Legal name(s) | Octopus Apollo VCT plc |
| Type | Generalist |
| Minimum investment | £5,000 |
| Amount raising | £75m with £25m over-allotment facility |
| Initial charge | 5.5% |
| Total discount via ii | 4.5% (5.5% for existing Octopus VCT investors) until 16 December 2025. 2.5% (3.5% for existing Octopus VCT investors) thereafter. |
| Net initial charge | 1.0% (0% for existing Octopus VCT investors) until 16 December 2025. 3.0% (2.0% for existing Octopus VCT investors) thereafter. |
How to apply: This Offer's application process requires you to follow the ‘Paper application form’ steps outlined in the ‘How to apply through interactive investor’ section below.
Pembroke VCT Offering
| Legal name(s) | Pembroke VCT plc |
| Type | Generalist |
| Minimum investment | £5,000 |
| Amount raising | £40m, with a £20m over-allotment facility |
| Initial charge | 5.0% |
| Total discount via ii | 3.0% until 21 October 2025 (first allotment), then 2.5% until 17 November 2025 (second allotment) and 2.0% thereafter. |
| Net initial charge | 2.0% until 21 October 2025 (first allotment), then 2.5% until 17 November 2025 (second allotment) and 3.0% thereafter. |
How to apply: This Offer's application process is online only via a service provided by the Company's receiving agent and registrar, The City Partnership (UK) Ltd. To apply through us please follow the 'Online application form' process outlined below.
Puma AIM VCT Offering
| Legal name(s) | Puma AIM VCT plc |
| Type | AIM |
| Minimum investment | £3,000 |
| Amount raising | £10m with £10m over-allotment facility |
| Initial charge | 3.0% |
| Total discount via ii | 3.0% until 31 December 2025. 0% thereafter. |
| Net initial charge | 0% until 31 December 2025. 3.0% thereafter. |
How to apply: This Offer's application process requires you to follow the ‘Paper application form’ steps outlined in the ‘How to apply through interactive investor’ section below.
Puma Alpha VCT Offering
| Legal name(s) | Puma Alpha VCT plc |
| Type | Generalist |
| Minimum investment | £3,000 |
| Amount raising | £15m with £5m over-allotment facility |
| Initial charge | 3.0% |
| Total discount via ii | 2.0% (3.0% for existing Puma VCT investors) if you apply before 28 February 2025. 0% (1.0% for existing Puma VCT investors) thereafter. |
| Net initial charge | 1.0% (0% for existing Puma VCT investors) if you apply before 28 February 2025. 3.0% (2.0% for existing Puma VCT investors) thereafter. |
How to apply: This Offer's application process requires you to follow the ‘Paper application form’ steps outlined in the ‘How to apply through interactive investor’ section below.
Puma VCT 13 Offering
| Legal name(s) | Puma VCT 13 plc |
| Type | Generalist |
| Minimum investment | £3,000 |
| Amount raising | £50m with £20m over-allotment facility |
| Initial charge | 3.0% |
| Total discount via ii | 2.0% (3.0% for existing Puma VCT investors) if you apply before 31 October 2025. 0% (1.0% for existing Puma VCT investors) thereafter. |
| Net initial charge | 1.0% (0% for existing Puma VCT investors) if you apply before 31 October 2025. 3.0% (2.0% for existing Puma VCT investors) thereafter. |
How to apply: This Offer's application process requires you to follow the ‘Paper application form’ steps outlined in the ‘How to apply through interactive investor’ section below.
Triple Point Venture VCT Offering
| Legal name(s) | Triple Point Venture VCT plc |
| Type | Generalist |
| Minimum investment | £3,000 |
| Amount raising | £10m with £20m over-allotment facility |
| Initial charge | 5.5% |
| Total discount via ii | 4.0% (5.0% for existing Triple Point investors) until first £5m raised or until 31 December 2025, whichever is soonest. 3.0% (4.0% for existing Triple Point investors) thereafter. |
| Net initial charge | 1.5% (0.5% for existing Triple Point investors) until first £5m raised or until 31 December 2025, whichever is soonest. 2.5% (1.5% for existing Triple Point investors) thereafter. |
How to apply: This Offer's application process requires you to follow the ‘Paper application form’ steps outlined in the ‘How to apply through interactive investor’ section below.