What is an aim VCT?

AIM VCTs invest in new shares issued by AIM-quoted companies. The Alternative Index Market (AIM) was set up by the London Stock Exchange in 1995 to provide a market for companies that do not wish to – or cannot – meet the more demanding and expensive listing requirements of the main stock market.

Why invest in an AIM VCT?

As well as providing investors with an easy way to access these small, unlisted or AIM-listed companies, VCTs offer a number of tax reliefs. VCTs offer up to 30% upfront income tax relief, tax-free dividends and an exemption from capital gains tax on the shares should they rise in value.

Can VCT invest in AIM?

It invests predominantly in AIM stocks: a blend of more mature cash-generative companies and earlier-stage businesses across a variety of sectors. The VCT also occasionally invests in unquoted companies currently accounting for c. 10% of net assets.

What are the types of VCT?

How much does Octopus AIM VCT charge?

Octopus charges an annual management charge of 2% per annum.

Overview of Amati AIM VCT

Is VCT worth it?

Investing in VCTs comes with a high level of risk. It could be many years before a start-up is profitable. Start-ups often go out of business and shareholders could lose all of their investment. VCTs try to avoid this by investing in a range of companies, with the aim of backing more successes than failures.

Is the Octopus VCT a good investment?

In the 10 years to December 2022, the VCT has generated a NAV total return of 57.9% (9.5% over five years). Past performance is not a guide to the future. Important: The information on this website is for experienced investors. It is not a personal recommendation to invest.

Which is better LVT or VCT?

Compared to VCT, luxury vinyl flooring is easier to clean/maintain. VCT remains a popular flooring surface in healthcare and education applications . However, LVT is becoming a preferred alternative in most commercial industries with high traffic areas.

Do VCT dividends go on tax return?

When you invest in VCTs, you can receive up to 30% income tax relief plus tax-free dividends. You don't need to declare any tax-free dividends you receive.

How do I choose a VCT?

Do you pay tax on AIM shares?

Like any ISA investments, you will not have to pay capital gains tax on profits you make, and you will not be taxed on dividends. AIM shares are also exempt from stamp duty.

How easy is it to sell a VCT?

If you wish to sell your VCT shares, you can do so by using a stockbroker. Shares in Downing's VCTs are traded on the main market of the London Stock Exchange, so any broker should be able to help you. Usually, you will need your share certificate to sell your shares.

When can I sell my VCT shares?

VCT shares trade on the London Stock Exchange, so you can buy or sell them at any time through a stockbroker or a share dealing account.

What is the advantage of AIM shares?

Tax advantages of holding AIM shares in an ISA

You won't be taxed on dividends from AIM shares held in an ISA, nor will you have to pay Capital Gains Tax (CGT) on any of the profits you make.

What does AIM mean shares?

What Is the Alternative Investment Market (AIM)? The Alternative Investment Market (AIM) is a sub-market of the London Stock Exchange (LSE) that is designed to help smaller companies access capital from the public market.

What is the average return on VCT?

The average VCT has delivered a total return of 53% over the past five years, and 111% over the past ten years – excluding the 30% income tax relief.

How do I claim my tax back from VCT?

VCT. You should claim Income Tax relief in your Self Assessment tax return for the tax year in which the shares were issued. You do not have to wait until you send in your tax return to get the benefit of the relief. You can do this by asking HMRC to make an adjustment to your tax code or requesting a tax refund.

Are VCTs exempt from inheritance tax?

Are VCTs subject to inheritance tax? We are sometimes asked whether Venture Capital Trusts, particularly AIM VCTs, qualify for inheritance tax relief in the same way that an AIM ISA does. AIM VCTs do not qualify for IHT relief, even though their underlying holdings might.

What are VCT fees?

Venture capital trust annual management fees tend to range between 2% to 3% per year. In addition to that, the initial charges for investing in a VCTs are generally around 5% and, Venture Capital Trusts tend to charge around 2% for each investment that they make.

What are the disadvantages of VCT flooring?

Is VCT good for bathrooms?

Both VCT and LVT are great options for high traffic areas such as healthcare, education or commercial spaces. As resilient products they are also ideal for spaces with topical moisture or spills such as multi-stall bathrooms, sink areas or break rooms.

Is VCT good for a garage floor?

Ceramic Tiles, Carpet or VCT Tiles are not garage flooring. Besides not being designed to handle the stress of vehicle traffic they require a lot more surface prep and installation labor.

What happens to VCTs on death?

After death (as a bequest) VCT shares valued as part of the estate. Any deferred capital gains are extinguished on death.

What is the tax relief for VCT dividend reinvestment?

The upfront income tax relief currently available to investors in new VCT shares is 30% of the amount invested (subject to annual restrictions on VCT investment and an investor's income tax liability being reduced to nil).

What are the qualifying conditions for VCT?

It is required to invest in and maintain a portfolio of qualifying trading companies. In addition, a VCT must: Derive its income wholly or mainly from shares and securities. Not retain more than 15% of the income from shares and securities.