VENTURE CAPITAL TRUSTS
Venture Capital Trusts is a popular investment method used on the London Stock Exchange. It helps your company make money by making investments in other brands. We encourage startups to make such investments as it helps in developing the entire business. There are also strict rules that come with Venture Capital Trusts, and it’s essential for you to know how they work!
VENTURE CAPITAL TRUST INVESMENTS
We’ll guide you in making investments that have tax relief to encourage you to keep investing in these higher risk and smaller companies. By pooling your investments with other clients, VCT give you the chance to share the risk with other small businesses. In the end, you’ll enjoy benefits such as:
- Subscribing new shares as soon as trust is introduced or buying from different investors once the trust is created.
- Getting fantastic tax relief when you purchase new venture capital trusts at a current rate of almost 30%!
- Holding your shares in a venture capital trust for up to 5 years to maintain your income tax relief.
- Maintain your company’s trust status, and you’ll never pay any amount touching on profits got from capital gains tax once you sell your shares in Venture Capital trusts.
Advice for Venture Capital Trust Investments
The market today is quite unforgiving, and there’s no guarantee that your investment will keep its original amount. Its value will rise or go down depending on your level of expenditures. So, when it comes to buying VCT, we advise our clients to first subscribe for brand new shares when any trust is introduced. You can get them from an online share account, or from a trusted stockbroker. As you can see, this is just like purchasing ‘normal’ company shares. All in all, make sure that you talk to us if you’re not sure whether to buy Venture Capital Trusts.