AlbionVentures

About VCTs

Attraction of Venture Capital Trusts

Venture Capital Trusts are investment companies listed on the London Stock Exchange and are particularly attractive to tax paying individual investors who invest in new VCT shares and hold them for at least five years. Furthermore, VCTs allow investors to invest in a portfolio of unquoted companies, as well as AIM quoted companies, while benefiting from the liquidity provided by the listing of the VCT's shares. The VCTs managed by Albion Ventures have a policy of buying back their own shares in the market, subject to certain criteria and the LSE's regulations, to ensure liquidity.


Following the Finance Act 2007, the following tax benefits are available to UK residents aged 18 or over investing after 6 April 2007:

• Tax-paying investors receive an income tax rebate at 30% on the amount invested, thus reducing the effective net cost of the investment to 70 pence for each £1 invested, provided the shares are held for at least five years and the investor has paid the tax;

• Dividends paid by a venture capital trust are free of income tax;

• There is no tax on capital gains made upon disposal of shares in a VCT; and

• Capital gains made by the venture capital trust on its underlying investments are free of corporation tax and, unlike an ordinary investment trust, these gains may be distributed by way of dividends to investors.

Investment in VCTs is limited to £200,000 per person per tax year. For more information contact your financial adviser.