Venture capital trusts (VCTs) have delivered strong dividends and income return for investors over the past decade, despite a cut to upfront tax relief, according to research from Chelsea Financial Services (CFS).
In a ten-year analysis of 29 VCTs published yesterday (24 September), CFS found that some trusts have returned more than 90% of their starting net asset value (NAV) through dividends. VCTs have continued to offer investors tax-free dividends and capital gains opportunities despite the government cutting the upfront income tax relief rate from 30% to 20% at the last Budget and a decade marked by political instability, Brexit, Covid, geopolitical conflict and a "torrid" AIM landscape, the research found. Chelsea Financial Services blasted the cut to tax relief and called for it to be re...
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