Predictable income stream
Following the introduction of FiTs in 2010 to encourage greater investment in to renewable energy, the ability to invest in the solar sector through a VCT offers unique benefits to UK investors.
Octopus VCT 3&4 will invest in sub-50kW solar installations which attract the benefit of the government's FiT scheme. Octopus VCT 3&4 intend to generate an annual dividend stream of at least 5p per annum starting in 2013.
LIMITED WINDOW OF OPPORTUNITY
There's only a limited window of opportunity for investors to access the government supported returns through the FiTs, as at the end of the 2011-2012 tax year investments in companies which benefit from FiTs will generally no longer qualify for
VCT purposes.
key risks
Please remember that the value of an investment into Octopus VCT 3&4 may fall as well as rise and an investor may not get back the full amount invested. Please note that there is no guarantee that the targeted minimum return will be achieved. Tax treatment is dependent on individual circumstances and may be subject to change in the future.
Investments made by Octopus VCT 3&4 will be in companies which typically have a higher risk profile than larger "blue chip" companies and whose securities are not readily marketable and therefore may be difficult to realise. The underlying capital
value of an investment in the VCTs is intended to decline over its investment period, reducing to zero after 25 years as the value of the underlying assets depreciate.
The nature of energy-generating assets is that their useful economic life is fixed and the assets are intended to produce predictable revenue streams over a protracted period. However, there may be circumstances where, without certain refurbishment expenditure, the value of such assets is likely to decline.
It is important that you read and fully understand the risks involved before investing so that you can decide whether this product is right for you. These are outlined in the brochure and set out in full in the prospectus.