Three venture capital trusts to buy for income

Venture capital trusts can provide a a useful source of income, with a generous upfront tax rebate and tax-free dividends paid. Professional investor Ben Yearsley picks three to buy now.

Each week, a professional investor tells MoneyWeek where he'd put his money now. This week: Ben Yearsley, investment director at Wealth Club.

Investors are finding it ever harder to find income and a new dividend tax (for anyone in receipt of more than £25,270 in dividends) is about to make it harder still. But there is a useful source of income that isn't subject to the new tax: venture capital trusts (VCTs). In addition, there is a generous 30% upfront tax rebate and dividends paid are tax-free.

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