venture capital trust


venture capital trust
(VCT)
Introduced in 1995 to encourage investment in small and start-up companies. Individuals invest in a quoted vehicle which in turn invests in the debt and equity of a spread of unquoted smaller companies.
A VCT typically takes the form of an investment company quoted on the London Stock Exchange.
An individual investor in a VCT is entitled to 40% income tax relief on the amount invested up to £200,000 provided that the investor's VCT shares are held for at least three years.
Investors in VCTs also receive an exemption from capital gains tax on any gains on the sale of the VCT's shares and exemption from income tax on dividends from the VCT. The VCT itself will not pay tax on dividends received from its investee companies but will be taxed on interest received. It is also exempt from tax on gains on the disposal of its investments.

Practical Law Dictionary. Glossary of UK, US and international legal terms. . 2010.

Look at other dictionaries:

  • venture capital trust — noun An investment which, subject to certain conditions, has tax advantages (abbrev VCT) • • • Main Entry: ↑venture …   Useful english dictionary

  • Venture Capital Trust — UK US noun [C] FINANCE ► VCT(Cf. ↑VCT) …   Financial and business terms

  • Venture Capital Trust — A Venture Capital Trust or VCT is a highly tax efficient UK closed end collective investment scheme designed to provide capital finance for small expanding companies and capital gains for investors. First introduced by the Conservative government …   Wikipedia

  • venture capital trust — VCT An investment trust that provides risk capital for businesses. The trust managers accept sums of money from investors who wish to share in the profits of the trust. This form of investment has certain tax advantages in the UK, in that any… …   Accounting dictionary

  • venture capital trust — VCT An investment trust that provides risk capital for businesses. The trust managers accept sums of money from investors who wish to share in the profits of the trust. This form of investment has certain tax advantages in the UK, in that any… …   Big dictionary of business and management

  • venture capital trust — /ˌventʃə kæpɪt(ə)l trʌst/ noun a trust which invests in smaller firms which need capital to grow. Abbreviation VCT …   Dictionary of banking and finance

  • Venture Capital Trust - VCT — A type of publicly listed closed end fund found in the United Kingdom. A venture capital trust is designed as a way for individual investors to gain access to venture capital investments via the capital markets. Its mandate is to seek out… …   Investment dictionary

  • National Venture Capital Association — Headquarters Washington, DC Membership 400 plus members NVCA Chair Paul Maeder Website http://www.nvca.org The Nati …   Wikipedia

  • New England Venture Capital Association — The New England Venture Capital Association (NEVCA) is a trade association with the mission of promoting venture capital investing and entrepreneurship in New England. As of October 2008, the association represents over 700 members from 100 firms …   Wikipedia

  • History of private equity and venture capital — The history of private equity and venture capital and the development of these asset classes has occurred through a series of boom and bust cycles since the middle of the 20th century. Within the broader private equity industry, two distinct sub… …   Wikipedia


Share the article and excerpts

Direct link
Do a right-click on the link above
and select “Copy Link”

We are using cookies for the best presentation of our site. Continuing to use this site, you agree with this.