VCTs' high yield potential

clock

As VCT portfolios reach maturity (normally after three to five years), VCTs have the potential to be...

As VCT portfolios reach maturity (normally after three to five years), VCTs have the potential to become tax effective high yield vehicles as their realised capital gains and income can be distributed as tax-free dividends to qualifying shareholders. The early VCTs are now heading towards the fifth anniversary of their launch which is an important date. After this date shareholders can sell shares without withdrawal of the 20% income tax relief claimed at the time of investment. To do so does mean that any capital gains tax, which an investor has deferred, will be crystallised which is a c...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on uncategorised

Scotland Investment Roadshow 2025: Join PA in Edinburgh and Glasgow next week

Scotland Investment Roadshow 2025: Join PA in Edinburgh and Glasgow next week

The Scotland Investment Roadshow kicks off next week

Professional Adviser
clock 19 September 2025 • 1 min read
Scotland Investment Roadshow 2025: Join PA in Edinburgh and Glasgow next week

Scotland Investment Roadshow 2025: Join PA in Edinburgh and Glasgow next week

The Scotland Investment Roadshow kicks off next week

Professional Adviser
clock 16 September 2025 • 1 min read
Scotland Investment Roadshow 2025: Join PA in Edinburgh and Glasgow

Scotland Investment Roadshow 2025: Join PA in Edinburgh and Glasgow

The Scotland Investment Roadshow kicks off later this month

Professional Adviser
clock 11 September 2025 • 1 min read