The British Smaller Companies VCT
Fund Overview
The British Smaller Companies VCT invests in high-growth, smaller UK companies. Managed by YFM Private Equity Limited, the VCT provides long-term capital growth and regular tax-free dividends. As of the latest update, the fund’s net assets exceed £415 million, with a strong track record of delivering consistent returns.
Investment Strategy
This VCT focuses on early-stage and scale-up businesses with innovative products and services. Its strategy includes:
Targeted Sectors:
- Focus on industries such as data, application software, and tech-enabled services.
- Strong emphasis on scalable business models.
Active Portfolio Management:
- Collaboration with management teams to unlock growth potential.
- Strategic investments designed to drive long-term value.
Recent Highlights:
- Investments in companies like Matillion Limited and Unbiased EC1 Limited.
- Average portfolio holding period of 6.2 years to maximize value.
Performance Metrics
| Year | NAV Total Return (%) | Dividends Paid (p/share) |
|---|---|---|
| 2024 | 6.8 | 5.0 |
| 2023 | 6.5 | 4.8 |
| 2022 | 6.2 | 4.5 |
Note: NAV Total Return includes NAV growth and dividends paid.
Tax Benefits
Investors benefit from:
- 30% income tax relief: Available for investments up to £200,000 annually.
- Tax-free dividends: Regular income payments without tax obligations.
- Capital gains tax exemption: No CGT on share disposals.
Tax treatment depends on individual circumstances and may change.
Fund Documents
Contact Information
- Phone: 0113 244 1000
- Email: [email protected]
- Website: British Smaller Companies VCT
Why Consider Access EIS Instead?
Both British Smaller Companies VCT and Access EIS provide tax-efficient ways to invest in innovative UK businesses, but they cater to different investment needs:
| Feature | British Smaller Companies VCT | Access EIS |
|---|---|---|
| Investment Focus | Early-stage and scale-up businesses across diverse sectors | Early-stage, high-growth UK startups |
| Minimum Investment | £6,000 | £5,000 |
| Tax Benefits |
- 30% Income Tax Relief - Tax-Free Dividends - Capital Gains Tax Exemption |
- 30% Income Tax Relief - Capital Gains Tax Deferral |
| Liquidity | Some liquidity via AIM and 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 |