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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.

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 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:

  1. 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.
  2. 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.
  3. 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.

New share offer key details

  • We are raising £20 million
  • The minimum investment is £5,000. The maximum investment that would still qualify for income tax relief is £200,000 in each tax year. Investors have the option to invest in 2014/15 and 2015/16 tax years, or both.
  • The share offer is open until 1 October 2015. But if we meet our fundraising target of £20 million before then, we may close the offer early, so it’s worth getting your application in as soon as possible.
  • “Early birds” who invest before 31 December 2014 receive a 2% reduction in the initial fee.
  • Existing Octopus VCT investors qualify for a loyalty offer of an additional 0.5% discount on the initial fee – as our way of saying ‘thank you’ for your continued support. This offer is available throughout the fundraising period.
  • There is a proposed merger of the Octopus VCT into Apollo VCT
  • Next allotment is planned for 19 December

The merger of OVCT into Apollo VCT has been completed

The merger of OVCT into Apollo VCT has been approved

We’re pleased to announce that proposals to merge Apollo VCT with Octopus VCT, creating a combined, larger VCT, have been approved. The resolutions required to complete the merger were passed by shareholders at General Meetings held on behalf of both VCTs on 28 November 2014.

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, to create a single Apollo VCT, is expected to result in a larger fund with a more diversified investment portfolio, lower administration costs and improved efficiency.

Risks of investing in a VCT

Your capital is at risk and you may not get back as much as you invested.

Tax treatment depends on individual circumstances of each investor and may be subject to change. The availability of tax reliefs also depends on the companies the VCTs invest in maintaining their qualifying status. HM Revenue & Customs may change the rules on VCT tax relief in the future.

Past performance is not a reliable indicator of future results and any forecast is not a reliable indicator of future performance.

VCT shares are likely to have higher volatility and liquidity risk than other types of shares quoted on the London Stock Exchange Official List. Investors might not be able to sell shares easily and should always consider a VCT as a long term investment.

Please read through our guide to risk.

Document Library

  • Download

    Octopus Apollo VCT Circular – October 2014

  • Download

    Octopus Apollo VCT prospectus and application form

  • Download

    Octopus Apollo VCT application form

  • Download

    Octopus Apollo VCT brochure

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 London Stock Exchange Official List. 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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