A venture capital trust (VCT), is a tax efficient UK closed-end collective investment scheme that invests in small companies, either unquoted or trading on the AIM (formerly the Alternative Investment Market) with the intention of returning a profit to investors.
Venture capital trusts, which are generally themselves listed entities on the London Stock Exchange, were introduced by the government in April 1995 and were designed to encourage investors to invest directly in a range of small higher-risk companies whose shares are not listed on a recognised stock exchange.
The maximum investment eligible for income tax relief is £200,000.
| VCT | Amount Raising | Minimum investment | Type | Initial Charges |
|---|---|---|---|---|
| Albion | £38m | £6,000 | Generalist | 2.5% |
| Baronsmead | £45m | £3,000 | Generalist | 3% |
| Downing ONE | £20m | £5,000 | Generalist | 3% |
| Foresight 4 | £50m | £3,000 | Generalist | 3% |
| Maven | £30m | £5,000 | Generalist | 5% |
| Mobeus | £80m | £6,000 | Generalist | 3.25% |
| Northern 2 | £60m | £3,000 | Generalist | 4% |
| Octopus Titan | £120m | £3,000 | Generalist | 3% |
| Pembroke | £20m | £3,000 | Generalist | 5.5% |
| Puma 13 | £30m | £5,000 | Limited life | 3% |
| Amati | £20m | £4,000 | AIM | 3% |
Alternatives to VCTs
EIS funds are an investment vehicle that raises cash from individuals and institutions for the purpose of investing in a portfolio of EIS eligible ventures.
The funds offer up to 30 per cent tax relief for eligible investors. SyndicateRoom has launched two separate EIS funds, find out more here.