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The Octopus AIM VCTs offer a tax-efficient way to invest in two established portfolios of AIM-listed, smaller companies with strong growth potential.

The London Stock Exchange set up the Alternative Investment Market (AIM) in 1995, the same year as the UK’s first VCT was launched. Twenty years later and both continue to encourage investment into the UK’s exciting and innovative smaller companies. More than 1,000 companies are now listed on AIM with a combined market value exceeding £68 billion*.

Access AIM through a VCT
For those comfortable with the risks of investing in smaller companies listed on AIM, getting exposure to these companies via a VCT can prove very attractive. As well as the long-term potential growth of smaller companies, the tax benefits associated with a VCT can enhance the position for investors further. In addition, having access to a large portfolio of companies provides confidence that if one of the companies fails, the performance of the other holdings can compensate.

The Octopus AIM VCTs
New investors will be buying into established portfolios of around 70 AIM-listed companies, many of which we believe will continue to deliver sales growth and generate profits. The companies within the portfolios operate across a diverse range of sectors, from building materials and pharmaceuticals to software development and recruitment.

*Source: London Stock Exchange, AIM factsheet, January 2016.

What are the risks?

We recommend you seek independent advice before investing. Our products place your capital at risk and you may get back less than you invest. It’s really important to us that you understand the risks which come with investing in our products.

Please read through our Guide to Risk

This advertisement is issued by Octopus Investments Ltd and is not a prospectus. Any decision to invest in the new share offer should be made solely on the basis of the information contained in the Prospectus.

New Share Offer

Octopus AIM VCT and Octopus AIM VCT 2 are now open for investment through a combined new share offer of £20 million. Both VCTs feature an established portfolio of around 70 AIM listed companies. With this new share offer, the investment team will look to invest in new profitable companies with attractive positions in their markets. They may also look to provide additional funding to portfolio companies that require further investment to accelerate growth.

Both Octopus AIM VCTs aim to pay a regular tax-free dividend yield of at least 5% per year and investors have the option to split their investment 60/40 between Octopus AIM VCT and Octopus AIM VCT 2, or place 100% of their investment into either VCT. As the two VCTs pay their dividends at different times of the year, investing in both offers the potential for investors to receive four dividend payments per year. The share offer is open until 1 December 2016.

To say ‘thank you’ to our customers for their continued support, we’re offering an additional 0.5% loyalty discount on the initial fee for any existing Octopus VCT customers throughout the fundraising period.

The minimum investment is £5,000. The maximum investment still qualifying for income tax relief is £200,000 per year.

The current tax benefits available to VCT investors are:

  1. Income tax relief: Up to 30% income tax relief on the amount invested in each tax year, as long as you hold your shares for at least five years. The amount you can claim tax relief on cannot exceed £200,000 in each tax year, and the tax relief you receive cannot exceed the amount of income tax you’re expected to pay.
  2. Tax-free dividends: When the VCT pays dividends, there’s no tax to pay, and you won’t have to declare them on your tax return.
  3. Tax-free capital gains on the sale of shares: If the value of your shares has increased while you have held them, you will not be liable for capital gains tax when you sell them; any growth is tax free.

Key risks of investing in a VCT

The value of your investment, and any income from it, can fall or rise. You may not get back the full amount you invest. Tax treatment depends on the individual circumstances and may change in the future. Tax reliefs depend on the VCT maintaining its VCT-qualifying status.

VCT shares can fall or rise in value more than other shares listed on the main market of the London Stock Exchange. They may also be harder to sell. Investors should always consider a VCT as a long term investment.

Past performance is not a reliable indicator of future results. These products are not suitable for everyone. Any investment should be based on a holistic review of your financial situation, objectives and needs.

Document Library

  • Download

    Octopus AIM VCT Factsheet – July 2016

  • Download

    Octopus AIM VCT 2 Factsheet – July 2016

  • Download

    Octopus AIM VCTs product overview

  • Download

    Octopus AIM VCTs brochure

  • Download

    Octopus AIM VCT and VCT 2 prospectus and application form

  • Download

    Octopus AIM VCTs application form

  • Download

    Octopus AIM VCTs Circular – December 2015

  • Download

    Octopus AIM VCT plc – Annual Report & Accounts 28 February 2015

View all documents

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Important Information

Our products place your capital at risk and you may not get back the full amount invested. Tax treatment may be subject to change and depends on the individual circumstances of each investor. The availability of tax reliefs also depends on the investee companies maintaining their qualifying status. Neither past performance or forecasts are reliable indicators of future results and should not be relied upon. Unquoted or smaller company shares are likely to have higher volatility and liquidity risks than other types of shares quoted on the Main Market on the London Stock Exchange. Website content is not intended to constitute investment, tax or legal advice. We recommend you seek independent advice before investing in our products.

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