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March 31, 2022

Final countdown to participate in this year’s £1 billion VCT boom!

By Zoya Malik

7 days until tax year 2021/22 tax year allocation closes

With just one week until the 5th April end of tax year deadline, wealthy and sophisticated investors will need to get their skates on if they want to take advantage of Venture Capital Trusts’ (VCT) annual allocation for 2021/22. From the £1.4bn of capacity made available this tax year, just £172 million is left and many VCTs have already sold out or are nearing capacity.

Alex Davies, CEO and Founder of Wealth Club said: “A record £967 million has been invested in VCTs so far this tax year across 27 different offers. 11 of these have already sold out but there are still some great opportunities available for investors, although they should act now rather than waiting until the 5th April as many of the best offers could be full by then. Quite a few VCTs also close a day or so before the tax year end to ensure they have to time to allot their shares. Popular offers with Wealth Club clients that still have capacity include the Pembroke and Proven VCTs.

There is always a dash for VCTs during the last week of the tax year as clients start to fully digest and realise their pending tax bills and we suspect the dash this year will be even more than usual. Successive restrictions on pensions and increased taxes coming in from April mean that wealthier investors are being increasingly squeezed, which has meant that VCTs are more in demand than ever.”

VCTs with limited availability we like: 

Pembroke VCT – Pembroke VCT seeks to invest in premium consumer brands. Its portfolio, which contains several wellness and ecommerce brands, has benefited from the changing consumer habits following the pandemic and as a result has performed strongly through the last two years. Profitable and recent exits from brands such as ME+EM the luxury fashion retailer, Pasta Evangelists, the premium pasta delivery business, and Plenish, the premium oat milk brand, have helped to fund generous dividend payments recently. We rate the manager Andrew Wolfson highly and believe Pembroke would complement a wider VCT portfolio. 

ProVen VCTs – The Proven VCTs contain a portfolio of fast-growing early-stage companies predominantly operating within the software and eCommerce sectors. In fact, over half (53%) of the portfolio is invested in companies that boast more than 25% annual revenue growth (in the twelve months to August 2021). The portfolio contains large positions in some of the UK’s emerging eCommerce stars, such as Papier, the online stationery business, My 1st Years, the personalised baby shop, MPB, the used camera marketplace, and Monica Vinader, the women’s jewellery designer. 

VCT’s that launched this tax year and still have capacity 

Offers still availableTotal raised (£m)Days openCapacity left (£m)
Octopus Future Generations25.55614.5
Foresight Enterprise VCT2.06918
Foresight Solar & Technology VCT2.07518
ProVen VCTs45.67614.4
Albion VCTs95.0811.5
Downing ONE VCT1.01155.7
Puma Alpha VCT1.813913.2
Seneca Growth Capital VCT2.51507.5
Maven VCTs26.318613.7
Triple Point VCT 201112.91942.1
Calculus VCT4.51965.5
Pembroke VCT3920111
Blackfinch Spring VCT4.620315.4
Downing FOUR VCT7.521522.5
Puma VCT 1328.22351.8
Foresight VCT172428
315.4 172.3

VCT’s that launched this tax year and have closed

Offers already closedTotal raised (£m)Days open
Mobeus VCTs351
Amati AIM VCT659
Unicorn AIM VCT2514
Octopus AIM VCTs4025
Octopus Apollo VCT41.626
Octopus Titan VCT20028
Hargreave Hale AIM VCT4050
British Smaller Companies6050
Northern VCTs4058
Draper Esprit VCT3066
Baronsmead VCTs75116
 651.6 

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