The Baronsmead VCT

Fund Overview

Baronsmead Venture Capital Trust (VCT) focuses on building a diversified portfolio of unquoted and AIM-listed companies. With a strong track record, Baronsmead VCT has delivered consistent shareholder returns through capital growth and regular tax-free dividends. As of November 2024, the fund has raised up to £50 million, with an additional over-allotment facility of £25 million.

The minimum investment is £5,000, and the fund targets a dividend yield of approximately 7% of NAV annually.

Investment Strategy

Baronsmead VCT combines investments in early-stage growth businesses with established, income-generating companies. The key highlights of the strategy include:

  • Portfolio Composition: Unquoted and AIM-listed businesses across multiple sectors.
  • Focus Areas: Growth potential and innovative business models.
  • Active Management: Close collaboration with management teams to unlock value.
  • Targeted Outcomes: Capital growth and steady dividend payments.

Recent highlights include investments in digital services, healthcare, and sustainable energy sectors.

Performance Metrics

Year NAV Total Return (%) Dividends Paid (p/share)
2024 6.0 7.0
2023 5.8 6.5
2022 5.5 6.2

Cumulative Dividends: Over the last 10 years, Baronsmead VCT has delivered a 7% annual dividend yield based on NAV.

Tax Benefits

Investors benefit from:

  • 30% income tax relief: Available on investments up to £200,000 annually.
  • Tax-free dividends: Receive regular income payments without tax obligations.
  • Capital gains tax exemption: No CGT on share disposals.

Tax treatment depends on individual circumstances and may change.

Contact Information

Why Consider Access EIS Instead?

Both Baronsmead VCT and Access EIS offer tax-efficient investment opportunities, but they cater to different investor needs:

Feature Baronsmead VCT Access EIS
Investment Focus Unquoted and AIM-listed companies Early-stage, high-growth UK startups
Minimum Investment £5,000 £5,000
Tax Benefits - 30% Income Tax Relief
- Tax-Free Dividends
- Capital Gains Tax Exemption
- 30% Income Tax Relief
- Capital Gains Tax Deferral
Liquidity Limited liquidity through buyback schemes Illiquid, with returns realized after ~5–7 years
Dividends Regular, tax-free dividends No dividends; all profits reinvested
Risk Level Moderate to High Very High

Learn More About Access EIS