Venture Capital Trust (VCT)

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VCTs invest in smaller, VCT-qualifying companies that are not listed on the main London Stock Exchange. Smaller companies have the potential to grow much faster than their larger, listed counterparts. By offering investors access to an instantly diversified portfolio of smaller companies, established VCTs can offer exposure to this sector, whilst supporting British innovation. Always remember, however, that investing in small, VCT- qualifying companies is high risk and you may not get back the full amount you invest.

Risk

While VCTs carry a higher risk profile, they can be a useful addition to your investment portfolio if you are looking to complement existing pension plans or other long-term investments, such as Individual Savings Accounts (ISAs). Changes to pension rules have placed further restrictions on the amount you can invest into a personal pension, both annually and over your lifetime. This means that VCTs could become a valuable part of retirement planning if your pension limits are at risk of being breached. As with any investment, please ensure that you are comfortable with the associated key risks before making any investment decisions.

Additional income

The potential for tax-free dividends can provide supplementary income, which could be useful if you’re approaching, or are in, retirement.

Tax benefits

When you invest in new VCT shares, you’re entitled to a number of tax incentives on investments up to £200,000 each tax year. These include:

Income tax relief – You can claim up to 30% upfront income tax relief on the amount you invest, provided you keep your VCT shares for at least five years. So if you invest £10,000 in a VCT, £3,000 can be taken off your income tax bill, although the amount of income tax claimed cannot exceed the amount of income tax due.
Tax-free capital gains – If you decide to sell your VCT shares and you make a profit, the proceeds won’t be liable for capital gains tax.
Tax-free dividends – If your VCT pays dividends, there is no tax to pay and you won’t need to declare them on your tax return.

REMINDER

You should never invest in a VCT solely for the tax benefits. Tax reliefs depend on the VCT maintaining its VCT-qualifying status. The tax benefits available to you will depend on your own personal circumstances and can change.

***** 5 out of 5

What were the circumstances that caused you to look for a financial adviser?

Pension, auto enrolment, insurance, shareholders protection

How did Daren help you?

Daren is extremely helpful, knowledgeable and approachable. He talked us through all the processes and made everything understandable and straight forward. Really great customer service from the whole team too.

Have you seen the outcome you were hoping for?

Absolutely

Review from Verified Client

***** 5 out of 5

What were the circumstances that caused you to look for a financial adviser?

I needed an income to pay for my wife’s care home costs.

How did Daren help you?

Daren has been a tower of strength and knowledge. He is extremely knowledgeable and has looked after all aspects of financial planning in turbulent times. I am very happy with the care and expertise given to me.

Have you seen the outcome you were hoping for?

He has maintained my income in difficult times. He has never over promised and under delivered.

Review from Verified Client

***** 5 out of 5

What were the circumstances that caused you to look for a financial adviser?

I had a sum of money that I wanted to invest and my wife had money invested that was not working well so she wanted to transfer the money to a Fund that would do better.

How did Daren help you?

He listened to our needs and wishes, made a thorough analysis of our finances and gave sound impartial advice on investment funds to see which system would work best for us. He is honest and talks clearly without any financial jargon, which is very reassuring.

Have you seen the outcome you were hoping for?

Yes. Our investments performed 400% better than my wife’s previous investment fund in just 12 months. Over the past 4 years of uncertainty over Brexit the funds have still performed well. The Pandemic caused a major slump in the financial markets but things are now starting to hopefully get back to normal now that Vaccines have been developed and in use in early 2021.

What could they have done better?

No financial systems could have performed in the past year due to the unprecedented events. Daren has been open and honest and could not have done more in the circumstances.

Review from Verified Client

***** 5 out of 5

What were the circumstances that caused you to look for a financial adviser?

Daren has been giving financial advice to me and my wife for the past years. His clarity and really good advice has been invaluable, especially from the moment George Osbourne freed up pension regulations.

How did Daren help you?

His unbelievable knowledge has kept all our finances in good order and is a rock in these choppy waters!

Have you seen the outcome you were hoping for?

Yes and more

What could they have done better?

His financial advice has been invaluable, especially with his unbelievable knowledge.

Review from Verified Client

***** 5 out of 5

What were the circumstances that caused you to look for a financial adviser?

I needed specific advise regarding the transferring out of a final benefit salary scheme. My usual adviser did not hold the relevant qualifications to give this advice and recommended Daren to deal with it.

How did Daren help you?

Daren met with me online and discussed the implications on the transfer. After taking full details he used the information to establish whether a transfer was the correct move.

Have you seen the outcome you were hoping for?

Yes, Daren established that the transfer could go ahead and the transaction went through at the end of December.

What could they have done better?

Nothing, all went to plan.

Review from Verified Client

Intelligent advice. Plain speaking. Excellent service. The three guiding principles of Ginkgo.

The best time to start a pension plan is now - and if you have already started, have a closer look at your arrangements to make sure you are on track.

The best time to start a pension plan is now - and if you have already started, have a closer look at your arrangements to make sure you are on track.

The government’s pensions freedoms regulations give holders of a personal pension greater flexibility in how they can access and use their fund.

With so many types of savings and investments, it’s wise to begin with expert advice on the potential risks and rewards for your personal situation.

Alternative investments are dynamic, higher risk investments in environments the UK government wants to support, such as future technology.

Planning now for the inevitable fact that we won’t be around for ever is one of the kindest things we can do for our loved ones.

Planning now for the inevitable fact that we won’t be around for ever is one of the kindest things we can do for our loved ones.

Crossing fingers is not enough. Protect yourself and your family financially by making money available, should something unexpected happen.

You probably already protect your business’s property and other assets. So don’t overlook your most valuable assets: your staff and shareholders.

A mortgage is one of the most expensive, complex purchases you’ll ever make. With thousands to choose from, it makes sense to take professional advice.

There’s a lot you need to consider before raising money from your home. A financial adviser can help you decide if the benefits outweigh the drawbacks.

With advance planning and an effective tax strategy, you can avoid paying more to the government than you need to.

Our handy calculators were developed by mathematicians to help you get a handle on some of the figures behind your biggest financial decisions.

Higher risk investments

Warning Text

Body

Risk

Additional income

Tax benefits

Intelligent advice. Plain speaking. Excellent service. The three guiding principles of Ginkgo.

The best time to start a pension plan is now - and if you have already started, have a closer look at your arrangements to make sure you are on track.

The best time to start a pension plan is now - and if you have already started, have a closer look at your arrangements to make sure you are on track.

The government’s pensions freedoms regulations give holders of a personal pension greater flexibility in how they can access and use their fund.

With so many types of savings and investments, it’s wise to begin with expert advice on the potential risks and rewards for your personal situation.

Alternative investments are dynamic, higher risk investments in environments the UK government wants to support, such as future technology.

Planning now for the inevitable fact that we won’t be around for ever is one of the kindest things we can do for our loved ones.

Planning now for the inevitable fact that we won’t be around for ever is one of the kindest things we can do for our loved ones.

Crossing fingers is not enough. Protect yourself and your family financially by making money available, should something unexpected happen.

You probably already protect your business’s property and other assets. So don’t overlook your most valuable assets: your staff and shareholders.

A mortgage is one of the most expensive, complex purchases you’ll ever make. With thousands to choose from, it makes sense to take professional advice.

There’s a lot you need to consider before raising money from your home. A financial adviser can help you decide if the benefits outweigh the drawbacks.

With advance planning and an effective tax strategy, you can avoid paying more to the government than you need to.

Our handy calculators were developed by mathematicians to help you get a handle on some of the figures behind your biggest financial decisions.

Higher risk investments

Venture Capital Trust (VCT)

Warning Text

Body

Risk

Additional income

Tax benefits

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