FS Ventures provides access to Venture Capital Trust (VCT) portfolios, which aim to provide investors with tax-efficient access to a portfolio of companies with growth potential, targeting a tax-free dividend stream, through a combination of regular and special dividend payments.
VCTs can offer an attractive way to gain exposure to smaller companies that are not listed on the main market of the London Stock Exchange. However, investing in VCT-qualifying companies means VCTs are high-risk investments, and investors may not get back the full amount they invest.
Investing in a VCT means you are helping innovative smaller companies to create jobs, prosperity and economic growth. And, they offer a number of tax reliefs, too. Some companies that started off with funding from VCTs have grown to become household names in their own right. Some have achieved a listing on the London Stock Exchange and some have been sold to global brands, such as Microsoft, Amazon and Twitter, delivering excellent returns for VCT investors.
As well as providing investors with an easy way to access these small, often unlisted companies, VCTs offer a number of tax reliefs. VCTs offer up to 30% upfront Income Tax relief, tax-free dividends and an exemption from Capital Gains Tax on the shares should they rise in value. It’s important to understand that smaller companies can struggle in their early years, and some will not be successful. Therefore, the tax incentives are there to help compensate investors for the risk they take with their money.
VCT Tax Incentives
When you invest in new VCT shares, you are entitled to claim a number of tax incentives on investments up to £200,000 each year. These include:
*Income Tax relief is only applicable for the current tax year.
The content of this webpage should not be construed as financial advice. FS Ventures is a non-advised only service.
The benefit of tax relief depends on the individual circumstances of each investor and is assessed at the point a claim for relief is made.
Tax rules could change in the future and the availability of tax relief is not guaranteed.
Non-advised investments may include possible conflicts of interest. Including where FS Ventures and/or Finance Shop or its employees are invested in selected funds and companies, potentially with significant shareholdings.
Any decision to invest should be made only based on the relevant documentation for each investment. Past performance is not necessarily a guide to future performance. The value of an investment may go down as well as up and investors may not get back the full amount invested.
Investments in small unquoted companies carry a high level of risk. These investments are highly illiquid and as such, there may not be a readily available market to sell such an investment. FS Ventures is targeted at sophisticated investors who understand the risk of investing in early-stage companies and can make their own investment decisions.
The investment opportunities offered on this platform are not covered by the Financial Services Compensation Scheme.