The VCT season seems to be starting early this year, with Amati AIM VCT opening for its initial fundraise of £30 million on 30th July at 9am. In addition to the VCTs already open at present, several more VCTs have announced their intention to fundraise. Northern VCTs are looking to raise £50 million across their three VCTs, Hargreave Hale AIM VCT, Pembroke B shares VCT and the Octopus Titan VCT.

Against the backdrop and uncertainty of the pandemic, the VCT fundraising figures for last year were strong, raising £685 million for 2020/21 tax year, up 11% on the previous year and only 6% below the strong fundraise year of £731m for 2018/2019.  With 30% income tax relief, and a focus on growth companies, strong tax-free dividend flow, assisted potentially by special dividends from exits, there are some are key and attractive fundamentals helping to drive demand for VCTs. This year, with increased capacity looking likely, and crucially with that capacity being announced earlier in the year, could well be another record breaker.

AIM focused VCTs were very popular last year, and with a limited number of AIM VCTs in the marketplace, being ready for their fundraises is key. *The AIM 100 (the largest stocks listed on the index) is up 50% over the past year and has returned 83% in 5 years. Meanwhile, the FTSE 100, is up only 14% and returned 8% over 5 years. The strong performance of AIM over the past few years has helped to drive flow into VCTs. Alongside the 30% income tax relief investors receive on VCT investments (subject to holding the investment for 5 years) and tax-free dividends and gains, VCTs are becoming a key alternative investment for many clients.

The sales team are here to assist with all VCT enquiries, so please do get in touch.

Melissa Griffiths 
melissa.griffiths@growthinvest.com

Click here to hear Melissa and Lawrence Gosling talk about the VCT 2021/22 Summer Preview

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