Venture Capital Trusts

Venture Capital Trusts (VCTs) were created in 1995 to boost investment in smaller unquoted companies, there is now a good length of track record with a wide disparity in returns. The tax incentives are generous and of particular interest for investors liable to higher rates of Income Tax who are seeking an income.

Who are VCTs designed for?

VCTs are not a suitable option for everyone, but can be appropriate for experienced investors who are willing to take on a degree of risk within a diversified portfolio. We consider them to be a complementary option for investors who:

  • are Higher Rate (40%) or Additional Rate (45%) Income Tax payers
  • wish to supplement their portfolio having fully contributed to both their pension and ISA
  • currently own a diversified portfolio and are willing to invest in an inherently risky asset class, with the added incentive of tax breaks
  • are comfortable with a long holding period
  • are resident in the UK

EQ has put together an introductory guide to Venture Capital Trusts which is available to download for free:

Selected VCT offers

The following Venture Capital Trusts are open for investment:
* Includes any discount offered by the promoter.
Name EQ review Offer type Closing dates Raised / sought Min. investment EQ discount*
British Smaller Companies VCTs Top-up 5 April 2019 £5.5m / £30.0m £3,000 2% Offer for existing investors only until 4 Jan 2019 View offer
A top-up into two existing evergreen VCTs managed by an experienced team with a focus exciting growth opportunities.
Calculus VCT Top-up 3 April 2019
30 Aug 2019
£0.0m / £10.0m £5,000 New Investor 2.5%
Existing Investor 3.0%
View offer
Calculus VCT is raising £10m via a top-up, to be invested in mature and profitable companies.
Foresight 4 VCT Top-up 5 April 2019
30 April 2019
£4.4m / £50.0m £3,000 New Investor 2.0%
Existing Investor 2.5%
View offer
Foresight 4 VCT is a generalist VCT, investing across a broad range of sectors and has a target dividend of 5% per annum.
Hargreave Hale AIM VCT 1 Top-up 5 April 2019
31 Aug 2019
£0m / £30.0m £5,000 1% View offer
The existing Hargreave Hale AIM VCT 1 is raising a further £20 million, to be invested in AIM-listed companies.
Octopus Titan VCT Top-up 5 April 2019
12 Sept 2019
£0.0m / £120.0m £3,000 New Investor 3.5% (pre-26 Oct)
Existing Investor 4.5% (pre-26 Oct)
View offer
A large private equity VCT investing in early stage companies, with a legacy bias to the technology sector.
Pembroke VCT (B Share) Top-up 5 April 2019
16 Aug 2019
£1.8m / £20.0m £3,000 1.5% View offer
Pembroke VCT B Share sits within Oakley Investment Management, a private equity specialist. The VCT is generalist, investing in companies with a focus on consumer brands.
Puma VCT 13 Top-up 5 April 2019 £0.2m / £5.0m £5,000 New Investor 1.0%
Existing Investor 2.0%
View offer
A top-up into an existing limited life VCT managed by an experienced team with a focus on capital preservation.
Seneca Growth Capital VCT B Shares Top-up 5 April 2019
3 May 2019
£3.6m / £10.0m £3,000 3.25% View offer
An existing VCT, launched in 2001, which will now be managed by Seneca Partners with a more generalist investment approach.

How to invest

If you want to benefit from 30% initial tax relief you must subscribe for new VCT shares via a public offer. You can download the prospectus and application forms using the links above.

Important Information

The information set out above is included for information purposes only and is not an offer or an invitation to buy or sell or a solicitation of an offer or invitation to buy or sell or enter into any agreement with respect to any security, product, service or investment. Any opinions expressed do not constitute investment advice and independent advice should be sought where appropriate. All information is current as of the date of publication, subject to change without notice, and may become outdated over time. Links to third party sites or pages are for information purposes only and such sites and pages are not part of this website or the responsibility of EQ Investors Limited and have not have been reviewed or verified by EQ Investors Limited. Following links to or from any other sites or pages shall be at your own risk. Please note that tax rates and bases can change without notice.

VCTs should be considered to be high risk investments suitable only for experienced investors who can afford to incur losses.