VCT season starts early

With the Patient Capital Review coming out this November, there have been rumours that HMRC may cut the income tax relief received by VCT investors down from 30% to 20%.

This potential change has meant that many of the well established VCT companies have come out with top-up offers much earlier this year. This, added to the fact that some of these very popular VCTs have not been open to investment for the past couple of years has meant we at Chelsea Financial have seen a huge rise in VCT sales from both existing and new VCT clients.

Act now to not miss out

At the time of writing this, three VCTs which are filling up fast are:

  • Unicorn AIM: £24m of £30m subscribed
  • Northern: £44.3m of £60m subscribed
  • Mobeus: £36.5m of £50m subscribed

It will not be long until these reach capacity, so we are encouraging our clients and anyone else interested in VCT investment to not leave their purchases to the end of the tax year.

The list of other popular VCTs which are open at the moment, along with the prospectuses can be found here.

Chelsea Financial VCT discount & special offers

We at Chelsea Financial will always rebate fully our initial commission to our VCT clients, which comes in the form of extra units.

We have a special offer at the moment for the Baronsmead VCT top-ups. Where as there is no initial commission to rebate, we are offering cash back as follows:

£10,000-£24,999 invested = £25 cash back
£25,000-£49,999 invested = £75 cash back
£50,000+ invested = £100 cash back


The downside of VCTs:

  • VCTs invest into very high-risk, smaller companies that may fail.  
  • They are also very illiquid and you may have to hold them for longer than the minimum five-year investment period.  
  • There is a risk that you will get back less than your original investment. 

Important notice: VCTS
Please be aware that VCTs are long-term investments. VCTs usually invest in small, unquoted companies and therefore carry a greater risk than many other forms of investment. In addition, the level of charges are often greater than unit trusts and OEICs. Past performance is not necessarily a guide to the future. The value of investments, and the income from them, can fall as well as rise, due to market and currency fluctuations and you may not get back the amount originally invested. All our featured products should be regarded as medium to long-term investments. Chelsea Financial Services offers an execution-only service. If you require investment advice you should contact an expert adviser. Tax assumptions are subject to statutory change and the value of tax relief (if any) will depend upon your individual circumstances.

Published on 13/10/2017