[ˈvɛnʧə ˈkæpɪtl trʌst]
A Venture Capital Trust is an investment fund specialising in early stage businesses. Investors in a VCT can receive income tax relief and tax-free dividends.
A Venture Capital Trust is an investment company that specialises in investing in small and early stage companies. The investment managers in control of these funds believe that these small companies have a high growth potential.
A Venture Capital Trust provides capital for these growing businesses. They are often run by individuals who have run successful startups in the past so a Venture Capital Trust can also provide guidance, and give the businesses the best chance of succeeding.
A Venture Capital Trust can provide a Tax-efficient method of investing. Individuals can invest up to £200,000 per year while receiving a 30% Income Tax relief. Individuals can also receive tax relief on income from dividends.
HMRC must approve the VCT and the VCT must invest in unlisted companies.
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