VENTURE CAPITAL TRUSTS: THE TERMS YOU NEED TO KNOW

VCT: Venture Capital Trust, a stock market-listed fund investing in start-up businesses. DIVIDENDS: Income (tax-free) paid by the managers. Not guaranteed. TAX RELIEF: A 30 per cent bonus paid by the Government for your willingness to back entrepreneurs by buying new shares in a VCT. Means a £10,000 investment costs you £7,000. MINIMUM HOLDING: Five years, otherwise the Revenue will come after you for the 30 per cent relief you got on your initial investment. CAPITAL GAINS TAX: Not paid on any gains you make when you come to sell your shares. SHARE PRICE: The current value of your investment per share held. ASSET VALUE: The value of the assets held by the trust. Most trusts trade at a discount – where the shares are worth less than the value of the underlying assets. HIGH-RISK: What VCTs are.