Open VCT Funds

If you think that Venture Capital Trusts correspond to your needs, and are interested by the potential to convert these into a SIPP to boost your pension, please click the links below for more information, call us directly, or speak to your financial adviser.

Octopus Titan VCT 5
Octopus Second AIM VCT

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0800 316 2349
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Eroded Pension?

Many people will have seen their pension pots eroded by the recent downturn in the stock market, and may have concerns about their pension income when they retire. This will be of particular concern to those people nearing retirement age, who may feel that they do not have the time to wait for the stock market to rebound to previous highs.

For these and any other investors looking to quickly raise the value of their pension, Venture Capital Trusts (VCTs), placed into Self Invested Personal Pension (SIPP) structures, represent a compelling investment due to the tax benefits they unlock.

How does it work?

Venture Capital Trusts offer a number of tax benefits, but of particular importance in this scenario is 30% upfront income tax relief if the VCT is held for five years. For example, this increases the value of a £100,000 initial investment to £130,000.

By rolling the VCT into a SIPP after the five year holding period there are additional tax incentives on the transferral: a 25% SIPP and 25% income tax rebate (for higher rate tax payers). This adds a further £50,000 to the initial investment (assuming no growth in the VCT itself), creating a total pension pot, after five years, of £180,000 from the initial £100,000 invested.