- Maven’s VCTs invest in both unquoted companies and Aim stocks
- They have found their best deals outside London
- Sectors such as software, healthcare, funeral care and cybersecurity have performed well over the course of the pandemic
Investor demand for venture capital trusts (VCTs) shows little sign of letting up. Fundraising levels for the 2021-2022 tax year in late December suggested that inflows will exceed those in 2020-2021 which was also a bumper year. VCTs’ tax breaks, which include 30 per cent upfront income tax relief if you hold a VCT’s shares for at least five years and tax-free dividends, have been buttressed by the growth of technology businesses in the UK.
This is a key point in favour of the VCT market, according to Bill Nixon, managing partner and head of the investment team at Maven Capital Partners. “The UK has become a world-class technology economy with some great companies emerging,” he adds.
Nixon thinks that this makes VCTs, which gravitate towards tech-facilitated businesses, more attractive. And reductions in…
