Finance Act makes venture capital trusts more attractive

VCTs

After significant changes to its tax breaks in the Finance Act 2004, VCT investors can look forward to a bumper year ahead

A venture capital trust (VCT) is an investment trust listed on the London Stock Exchange (LSE) which offers investors the ability to invest in small unquoted, Ofex or Alternative Investment Market (Aim) listed companies. The VCT builds up a portfolio of investee companies, providing the investor with a spread of risk. For example, an investor in a £40m size VCT may typically find their money invested in 30-40 companies. VCTs were introduced on 6 April 1995, with the first offering appearing in September 1995. The intention was to encourage investment in small companies that were finding ra...