Venture capital trust - A type of investment trust which invests in small unquoted companies with assets of under Ј15 million, including AIM and OFEX companies, and which is designed to attract risk capital from higher rate taxpayers by giving them tax concessions.Like investment trusts, VCTs are quoted on the London Stock Exchange.As with investment trusts, their share price may trade at a discount to net asset value.They provide 3 types of tax benefit:-40% capital gains tax deferral, provided the shares are held for a period of no less than 3 years.- 20% income tax relief on the amount of the original investment- All dividends are tax free and all gains on disposal after 3 years tax exempt. But when the shares are sold, the original capital gains tax liability will be re-triggered.VCTs are only allowed to invest in companies under a certain size, and there is a limit on how much they can invest in any one company. The idea is that they must apply their funds to genuinely risky entrepreneurial ventures.
Venture capital trust : a type of investment trust which invests in small unquoted companies with assets of under Ј15 million, including aim and ofex companies, and which is designed to attract risk capital from higher rate taxpayers by giving them tax concessions.like investment trusts, vcts are quoted on the london stock exchange.as with investment trusts, their share price may trade at a discount to net asset value.they provide 3 types of tax benefit:-40% capital gains tax deferral, provided the shares are held for a period of no less than 3 years.- 20% income tax relief on the amount of the original investment- all dividends are tax free and all gains on disposal after 3 years tax exempt. but when the shares are sold, the original capital gains tax liability will be re-triggered.vcts are only allowed to invest in companies under a certain size, and there is a limit on how much they can invest in any one company. the idea is that they must apply their funds to genuinely risky entrepreneurial ventures.
Venture capital trust