RISE IN VCT AMOUNTS WILL BENEFIT SMALL BUSINESSES
October 31st, 2017.


The amount raised by Venture Capital Trusts (VCTs) has risen by over £100 million in a year. VCTs issued shares to a value of £570 million in 2016-17, a 28 percent rise over the previous year according to stats released by HMRC recently.


"The increase in the amount of money that is available to benefit start-up and scale-up industries is great news for all involved," says Nick Travis, a partner in investment management at Smith & Williamson, the accountancy, investment management and tax group.

"It gives those people looking for funding another avenue to obtain it. There have been some innovative businesses such as MPP, Quantexa or Egress that have used funding from VCTs to their advantage. Our own clients and respondents have noticed an uptick in the amount of funding available to them in recent times."

A VCT is a tax based Venture Capital Scheme. It is designed to encourage individuals to invest indirectly in a range of unquoted smaller, higher-risk trading companies, by investing through VCTs. The VCT must be listed on a UK recognised Stock Exchange but are exempt from Corporation Tax and any Capital Gains Tax (CGT) on disposal of shares.


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