Calculus Capital, the Enterprise Investment Scheme (EIS) and Venture Capital Trust (VCT) fund manager is to waive initial fees on its new VCT, until the end of the year, if a subscription is made before the end of the year.
The new VCT fund aims to raise £10 million and deliver an annual dividend of 4.5% from Summer 2019. The Calculus VCT is expected to be invested in a diversified portfolio of 30 companies. Investors can invest from £5,000 to £200,000.
New rules introduced under the Finance Bill 2017/18 mean Enterprise Investment Schemes (EIS) and VCT funds have to be invested in genuinely entrepreneurial companies with growth prospects, rather than low-risk asset-backed schemes. Calculus argues this may act as a constraint on the availability of VCT funds this year, but that it has only ever invested in growth companies and sees no shortage of exciting investment opportunities.
After December 31st Calculus’s normal fees will apply – 5% for those applying direct, 3% for those applying through a professional adviser.
John Glencross (above), Chief Executive Officer of Calculus Capital, said: “We have been successfully identifying great companies with established momentum behind them and attractive growth prospects ahead for 20 years. We’ve never seen the level of entrepreneurial activity in the UK as strong as it is today – nor such an appetite from investors to back entrepreneurs. If you combine that with competitive management charges and this market-beating offer, it must make the Calculus VCT one of the most appealing available.”
A VCT is an HMRC approved company that invests in or lends money to unlisted companies often small ones. VCT investments attract 30% income tax relief if held for five years. Dividends are tax free and there is no capital gains tax on the sale of shares. The maximum annual investment that you can claim relief on is £200,000. Because of the nature of the investment and because it is in unquoted stocks which might not have an immediately available market price and are often small start-up companies without much of a track record VCTs are seen as higher risk investments.