Should you venture into VCTs?

It's easy to see why high-earning investors are piling into venture capital trusts (VCTs) – the tax breaks are huge. But should you follow them?

It's easy to see why high-earning investors are piling into venture capital trusts (VCTs) the tax breaks are huge. But should you follow them?

VCTs offer 30% income-tax relief on lump-sum investments of up to £200,000 per tax year, provided the investment is held for five years. What's more, some funds pay tax-free dividends and any gains are free of capital-gains tax. VCTs invest in small, unquoted firms.

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Jody Clarke

Jody studied at the University of Limerick and was a senior writer for MoneyWeek. Jody is experienced in interviewing, for example digging into the lives of an ex-M15 agent and quirky business owners who have made millions. Jody’s other areas of expertise include advice on funds, stocks and house prices.