Call for clarity over VCT returns

Professional Adviser
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By Fiona Henderson Headline returns for venture capital trusts (VCT) often bear little resemblanc...

By Fiona Henderson Headline returns for venture capital trusts (VCT) often bear little resemblance to the underlying fund performance. The tax breaks and relief available on the trusts are varied and can add up to an investor only paying 40p to get 100p of exposure in the trust. As a result, managers have a whole range of ways in which they can quote returns to investors, sometimes giving an inflated idea of what the portfolio has actually achieved. On the initial investment into a VCT, an investor can claim 20% income tax relief, which some fund managers translate as the investor ha...

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