VentureCapitalTrusts

A Venture Capital Trust is a company listed on the stock exchange that pools investors' money to invest in a portfolio of smaller, higher-risk trading companies. In return for the higher risk involved, investors can benefit from tax reliefs including income tax relief on the amount subscribed and tax-free dividends, provided shares are held for the required minimum period.

Because VCTs spread investment across a number of underlying companies, they can offer a way to access the tax advantages associated with backing early-stage businesses with somewhat more diversification than a single direct investment. As with any higher-risk investment, the underlying capital is not guaranteed, and we would always recommend discussing suitability alongside your wider financial plans.