Your IndustryOct 15 2015

Guide to Venture Capital Trusts

pfs-logo
cisi-logo
CPD
Approx.60min

    Guide to Venture Capital Trusts

      pfs-logo
      cisi-logo
      CPD
      Approx.60min
      Search supported by

      Introduction

      By Emma Ann Hughes
      twitter-iconfacebook-iconlinkedin-iconmail-iconprint-icon

      VCTs were introduced by the government in 1995 to encourage investment into smaller companies, the growth engine of the economy.

      In many ways, VCTs are similar to investment trusts, but with additional investment rules in order to qualify for tax reliefs. VCTs are structured as PLCs and are listed on the London Stock Exchange. Investors subscribe for shares in a VCT, which will then seek to invest into a portfolio of qualifying companies.

      VCTs have a number of attractive tax benefits for investors. The generous tax benefits are designed to compensate for the increased level of risk associated with investing in smaller, less liquid companies. But in recent Budgets, the Conservative government has altered the rules for what type of company can sit within a VCT.

      This guide will examine the variety of VCTs available today, how selection processes may be affected by the government’s latest rule changes and whether advisers need to check VCTs they recommended in the past remain suitable today.

      Contributors of content for this guide include Paul Latham, managing director at Octopus Investments, Annabel Brodie-Smith, communications director of the Association of Investment Companies, Hugh Rogers, business development director at Puma Investments, Jack Rose, business development director for tax products at LGBR Capital and Chris Hutchinson, manager of the Unicorn Aim VCT.

      In this guide

      Articles
      CPD Questions
      To reveal the CPD questions which accompany this guide, please sign in and read all of the articles below.
      For unlimited access to FTAdviser content...

      Register now for free

      • Read the latest news and views from the world of financial advice
      • Never miss a story - sign up to our email alerts
      • Bank CPD while you read
      Have an account? Sign In