Venture
Capital Trusts

Venture Capital Trusts (VCTs) represent an exciting and potentially rewarding investment opportunity for individuals looking to support early-stage companies and innovative ideas.

Current offers

What are the benefits of a VCT?

  • 20% income tax relief
  • All dividends are free of income tax and capital gains tax
  • Gains within the VCT are free of corporation tax
Learn more about VCTs

Risk summary

Due to the potential for losses, the Financial Conduct Authority (FCA) considers this investment to be high risk.

Read more here

Current offers

Find out more about where you can invest as well as our cashback offers.

Current offers

Requirements

To invest in a VCT you must:

  • Be at least 18 years old

  • Be a UK taxpayer

  • Be paying the tax in the first place to qualify for the relief

  • Hold the VCT for 5 years, or you will forfeit the tax relief (unless the disposal is to a spouse or civil partner)

How to invest

If you are interested in investing in a VCT

  • 1

    Read the risk summary, available here

  • 2

    Complete our enquiry form, or call us on 020 7834 7300

  • 3

    Download the relevant application packs, from our Offers Page and return them to us.

FAQs

  • Investing in VCTs comes with significant tax incentives designed to offset some of the associated risks:

    Income Tax Relief: Receive a 20% income tax reduction on investments of up to £200,000 in newly issued VCT shares each tax year, provided you hold the shares for at least five years.

    Tax-Free Dividends: Dividends from VCT investments are exempt from income tax up to £200,000 per tax year.

    No Capital Gains Tax: You won’t pay capital gains tax when you sell your VCT shares, regardless of how long you’ve held them.

    Note: Tax rules can change, so always consult the latest regulations or a financial advisor before investing.

  • If you’re 18 or older, you can claim a 20% income tax reduction on the amount you invest in new VCT shares, up to £200,000 per tax year. For example, if you invest £10,000, you can reduce your income tax bill by £2,000. However, if you sell your VCT shares within five years (excluding transfers to a spouse or civil partner), you’ll lose this relief.

  • Investing in VCTs carries several risks:

    • High Risk of Failure: Early-stage companies may fail, potentially resulting in a total loss of your investment.
    • Illiquidity: VCT shares can be difficult to sell, making it challenging to access your money when needed.
    • Market Volatility: The value of VCT investments can fluctuate significantly due to the nature of the underlying companies.
    • Regulatory Changes: Changes in government policy or tax laws could affect the benefits and performance of VCTs.
    • Management Risk: The success of a VCT largely depends on the expertise of its fund managers.

  • Yes, there is a risk that you could lose all the money you invest in a VCT. The companies that VCTs invest in are typically early-stage and high-risk. It’s crucial to consider your risk tolerance and not invest money you can’t afford to lose.

  • VCT shares are often illiquid, meaning they may be difficult to sell on the secondary market. While many VCTs offer buyback schemes, these are usually at a discount and are not guaranteed.