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Venture Capital Trusts (VCTs) were introduced by the UK Government in the 1995 Finance Act to encourage individual UK investors to invest in young, high-growth British Companies. The Government sought to achieve this by offering a number of generous and attractive tax benefits to UK individuals who invest in a VCT.
The primary purpose of VCTs is to provide capital finance for small but expanding companies, with the aim of making capital gains for investors.
For individual investors, an investment in a VCT can represent a tax efficient way of building a portfolio of indirect investments in a range of companies.
For high-growth British companies, VCTs represent a source of expansion capital for the development of their business.
RISK WARNING
The value of an investment in IBIS VCT or any other VCT may go down as well as up and you may not get back the full amount invested. An investment in a VCT may be higher risk than investing in other securities listed on the London Stock Exchange’s official list and may be more difficult to realise. You should not invest in IBIS VCT or any other VCT unless you have carefully thought about whether you can afford it and whether it is right for you. You should regard an investment in IBIS VCT or any other VCT as a longer term investment. We recommend that you seek independent financial advice from an appropriately authorised independent financial adviser as to whether an investment in IBIS VCT or any other VCT is suitable for you, as well as your personal entitlement to any tax reliefs associated with an investment in a VCT. The share price of a VCT may not reflect its net asset value.
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