Venture Capital Trusts (VCTs) are complementary to the Enterprise Investment Scheme (EIS), in that both are designed to encourage private individuals to invest in smaller high-risk unquoted trading companies affected by the equity gap
While the EIS requires an investment to be made directly into the shares of the company, VCTs operate by indirect investment through a mediated fund. In effect they are very like the investment trusts that are obtainable on the stock exchange, albeit in a high-risk environment.
This fact sheet will give an overview of Venture Capital Trusts, including:-
- What is a VCT?
- Reliefs available to investors
- Which companies qualify for VCT investment?
The detailed rules surrounding Venture Capital Trusts are complex and beyond the scope of this fact sheet. If you are considering investing in a VCT, please do get in touch to discuss your personal circumstances and long term financial goals.
DISCLAIMER: This information is for guidance only, and professional advice should be obtained before acting on any information contained herein. We will not accept any responsibility for loss to any person as a result of action taken or refrained from in consequence of the contents of this publication.