Gresham House
Specialist asset management
What are VCTs - and why would you choose to invest in one?
What are VCTs - and why would you choose to invest in one?
Venture Capital Trusts (VCTs) are listed, closed-ended tax-efficient investment schemes, designed to give investors exposure to businesses and industries in an early stage of growth.
VCTs should be regarded as higher-risk investments designed for UK resident taxpayers with an investment time horizon of greater than five years, which is the minimum holding period to qualify for income tax relief. Capital at risk.
VCTs allow investors to benefit from:
- Income tax relief of up to 30% of their subscription amount on new shares (some or all of which investors may have to repay if they sell those shares within five years)
- Tax-free dividends
- Tax-free gains on sale of shares (after five years of new shares being issued)
Why invest in a VCT with Gresham House?
Our investment team has a successful track record of generating value for VCT shareholders through our Baronsmead, Mobeus VCTs, and Renewable Energy VCTs investment strategies.
The Baronsmead and Mobeus VCTs have been a consistent top performers amongst peers and are well regarded and recognised within the industry.
Our Renewable Energy VCTs are ranked ‘best in class’ compared to all other renewable energy VCTs launched in the same year.
How to invest in our VCTs
Our VCT offering provides exposure to either generalist early-stage UK companies through our Baronsmead trusts, or to the renewable and new energy sector through our Renewable Energy VCTs.
Risks to be aware of:
- The value of VCTs and the income from them is not guaranteed and may fall as well as rise
- As your capital is at risk you may get back less than you originally invested
- Past performance is not a reliable indicator of future performance
- Any tax reliefs are dependent on your individual circumstances and may be subject to change
- Funds investing in smaller, younger companies may carry a higher degree of risk than funds investing in larger, more established companies. Investments in smaller companies may be less liquid than investments in larger companies
The Baronsmead VCTs support the future of British businesses by investing in innovative smaller companies through tax-efficient listed venture capital trusts.
They typically invest in unquoted and AIM-traded businesses in the emerging or early-stage of their growth cycle.
The Mobeus VCTs invest in a diversified portfolio of unquoted UK companies, looking to drive growth.
Mobeus Income & Growth VCT plc
Mobeus Income & Growth 2 VCT plc
The VCTs in this strategy seek to invest in a portfolio of unquoted companies that specialise in long-term renewable energy projects and energy developers.
They are managed jointly and are invested in the same portfolio of companies.
