Octopus Apollo VCT – an opportunity for you to invest in a VCT that aims to preserve your capital and pay regular dividends
Some types of investment will look for ways to make your money grow, but they may not always be able to achieve this. That’s because chasing bigger potential rewards can increase the risk that you lose more of your money. With capital preservation, on the other hand, the objective isn’t to take additional risks in order to chase bigger potential rewards. Instead, the money is invested in a way that should mean there’s a greater likelihood it will be returned to you, and even with a small amount of potential growth on top.
The Specialist Finance team behind our Apollo VCT looks to invest in companies with established management teams and robust, predictable business models. This investment approach is designed to suit the capital preservation objective of Apollo VCT, which aims to return to investors their original investment. And after this has been achieved the VCT fund managers will look to reach their target of returning £1.20 for every £1 invested.
This advertisement is issued by Octopus Investments Ltd and is not a prospectus. Any decision to invest under the offer should be made solely on the basis of the information contained in the Prospectus and application forms which can be downloaded from the document library.
As a result of its investment strategy, Apollo VCT targets a return of £1.20 for every £1 invested over five years. This doesn’t include the income tax relief (up to 30%) you can claim on the original amount invested.
The current tax benefits available to VCT investors are:
- Income tax relief: Up to 30% income tax relief on the amount invested in each tax year, as long as you hold the 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 get cannot exceed the amount of income tax you are expected to pay.
- Tax-free dividends: When the VCT pays dividends, there’s no tax to pay, and you won’t have to declare them on the tax return or self-assessment form, if you complete one.
- Tax-free capital gains on the sale of shares: If the value of the shares has increased while you have held them, you will not be liable for capital gains tax when you sell them; the growth is tax free.
Important information on a proposed merger of OVCT into Apollo VCT
We’re proposing to merge Apollo VCT with Octopus VCT, creating a combined, larger VCT.
The investment approach taken by Octopus VCT is similar to Apollo. They both target stable returns through capital preservation, investing in the debt and equity of companies operating in several sectors. Merging the two VCTs and creating a single Apollo VCT would result in a larger fund with a more diversified investment portfolio, lower administration costs and improved efficiency. The proposed merger is expected to complete by December 2014 and is subject to regulatory and Apollo VCT and Octopus VCT shareholders approval.