AIC polls VCT managers on secondary market

Most VCT managers believe a secondary market is key for the sector, although only half expect one to...

Most VCT managers believe a secondary market is key for the sector, although only half expect one to be established within the next five years. There is little secondary market for VCT shares at present as the various tax breaks are only available on issue. However, several VCT managers believe the tax-free dividends on offer, as well as the chance to invest in a mature portfolio, could lead to a secondary market developing in future. As part of the AIC’s survey of VCT managers, many cited the main benefits of a secondary market as the ability to allow shareholders to sell more easily, f...