John Davies: Will Covid-19 create a dividend dilemma for VCTs?

Tax-free dividends have been a long-standing and fundamental attraction for VCT investors and generally have been well rewarded in recent years. However, with the economy in the grip of coronavirus, the full economic impact is yet to be revealed. In a year of mind-blowing but vital levels of financial support from the UK government, businesses have at least been able to access short term funding. As we head into Autumn, the job retention scheme appears set to end and businesses will need to work out how to deal with their government-funded loans that will eventually need to be repaid. ...