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Tax-savvy investors urged to buy now or risk being too late

26 March 2024

Savers continue to pile money into VCTs.

By Jonathan Jones,

Editor, Trustnet

Four venture capital trusts (VCTs) have closed their fundraisings after reaching capacity in the past week, according to data from Wealth Club.

Albion VCTs, Octopus, Apollo and Hargreave Hale AIM have joined British Smaller Companies VCTs, Foresight Enterprise, Northern VCTs, Octopus AIM and Unicorn AIM in filling up their allocations.

Alex Davies, founder of Wealth Club, said although it has been a slower year than in the previous two “boom years”, sales are well above the average of the past decade.

“Several popular VCTs have already filled and others are rapidly approaching capacity. Once those targets are reached the managers will shut their doors for this tax year. If you spot a VCT you like, do it now before it’s too late,” he said.

“Those planning on taking advantage of a quieter tax year and leaving it to the last minute should beware. Many VCTs actually close before the tax year end to give them time to get all the paperwork in order. Moreover as the deadlines get closer, many popular VCTs will sell out.”

Last week Trustnet covered why investors may wish to buy VCTs, including the generous tax breaks and potential returns on offer from investing in smaller businesses.

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