Octopus Apollo VCT – targeting regular tax-free income
Regular income strategies are designed for investors seeking a steady stream of dividend payments. Octopus Apollo VCT aims to provide investors with tax-free dividends of up to 5p per share each year.
While smaller companies often struggle in their early years, and have a higher failure rate than larger companies, the managers of Octopus Apollo VCT aim to preserve the value of the original investment, along with paying regular tax-free dividends year after year.
The managers use several approaches to find suitable companies to invest in. As well as conducting their own research, they regularly talk to companies that specialise in providing financing for small and medium-sized businesses. This helps to identify funding gaps in companies that could suit Octopus Apollo VCT’s investment mandate. Much of this work is driven by forming strong relationships, so the reputation of the team, and the performance track record of Octopus Apollo VCT, are important factors.
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.
New share offer
Octopus Apollo VCT is now open for investment through a new share offer of up to £30 million. This money will be used to make further investments in established portfolio companies, as well as funding new investments.
The share offer is open until 1 November 2016, but may close earlier if the fundraising target of £30 million is met before then.
Existing Octopus VCT investors qualify for an additional 0.5% loyalty discount on the initial fee. It’s our way of saying ‘thank you’ for your continued support. This offer is available throughout the fundraising period.
The minimum investment is £5,000. The maximum investment that would still qualify for income tax relief is £200,000 in each tax year.
The current tax benefits available to VCT investors are:
- Income tax relief: Up to 30% income tax relief on the amount you invest in each tax year, as long as you hold the shares for at least five years. You can only claim income tax relief on VCT investments of up to £200,000 in each tax year, and the income tax relief you get cannot exceed the amount of income tax you are expected to pay.
- Tax-free dividends: If 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.
- Tax-free capital gains on the sale of shares: If the value of the shares increases, you will not be liable for capital gains tax when you sell them; the growth is tax free.
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 of each investor and may change in the future. Tax reliefs depend on the companies the VCT invests in maintaining their VCT-qualifying status.
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.
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.
Octopus Apollo VCT annual report 31 January 2016
Octopus Apollo VCT brochure
Octopus Apollo VCT prospectus and application form
Octopus Apollo VCT Product Overview
Octopus Apollo VCT application form
Octopus Apollo VCT plc – Circular November 2015