Venture Capital Trusts

Investors can claim upfront income tax relief equal to 30% of their investment on the first EUR 200,000 each tax year.

The tax-free dividends paid by a VCT can provide a supplementary income, which could be useful, especially if investors are approaching or in retirement.

Investing in a VCT means investors are helping innovative smaller companies to create jobs, prosperity and economic growth.

VCTs can diversify an investor’s portfolio by giving them access to companies they may not otherwise hold.

The value of a VCT investment, and any income from it, can fall as well as rise. Investors may not get back the full amount they invest.

VCT shares could fall or rise in value more than other shares. They may also be harder to sell.

Tax reliefs depend on a VCT maintaining its VCT-qualifying status.

Tax treatment depends on individual circumstances and tax legislation may change in the future.