Venture Capital Trusts (VCTs)

Venture Capital Trusts (VCTs) are investment funds in the UK that invest in small, young companies with growth potential. When you buy shares in a VCT, you're supporting these businesses while gaining potential tax benefits, such as income tax relief and exemption from capital gains tax. VCTs aim to generate returns through the success of their investments, but they also come with higher risk because they focus on early-stage companies. They are suitable for investors willing to accept these risks in exchange for the possibility of higher rewards and tax advantages.