Octopus Investments launches Secure VCT

Octopus Investments will launch a Secure VCT which it says will cut investors' income tax bill, keep capital secure, and allow a clear exit after five years.

The focus of the new VCT will be investing in companies with highly predictable contractual revenue streams across a range of customers. It will be wound up in 2015, pending investor approval.

Guy Myles, managing director of Octopus Investments, says: "Octopus Secure VCT offers income tax relief and, in response to investor demand, we have created a product that also provides a high level of capital security and a fixed opportunity to release capital, and any gains, tax-free after five years.

"By offering investors this opportunity to exit after five years we are able to define a targeted minimum return of 105p. As a result, the Secure VCT also responds to feedback from advisers that they want a VCT that addresses the lack of liquidity which can sometimes be an issue for VCTs."

Octopus will also roll up its annual management fees, interest free, and will only be paid if investors receive the targeted minimum return.