The Association of Investment Companies (AIC) has responded to today’s announcements in the Budget affecting Venture Capital Trusts (VCTs).
Ian Sayers, Director General, Association of Investment Companies said: “The Government continues to support the VCT sector and recognises its role as providers of finance to SMEs. Sector assets are at an all-time high and demand for the VCT sector is strong, with £300 million raised in the current tax year to date.
”The Government’s commitment to VCTs was shown by the confirmation that investors will be able to buy VCT shares via platforms. This will make it more straightforward for advisers and investors to purchase VCT shares in the same way that they buy other investment products.
“As expected new rules are to be introduced on enhanced share buy-backs and dividend payments arising from a reduction in share capital. Other changes prevent VCTs and other enterprise schemes from investing in companies which receive certain renewables subsidies.
“We are confident that VCTs will successfully manage the impact of these changes, as they have done in the past, and will continue to meet the needs of investors.”
The AIC’s VCT research report, “Investing for the future”, published last year found that:
- VCTs are patient investors, with the average investment held for around six years, though some companies remain in the portfolio for ten years or more.
- Investee companies created on average 52 new jobs following investment.
- Investee companies created on average £10.8m of new turnover following investment.
- 78% of investee companies had a representative of the VCT fund management group team on their board, illustrating that it is the combination of investment and business experience that provides sustainable benefits to the economy.
- 41% of investee companies exported.
- 31% of investee companies reported an investment in research and development (R&D) in the last 12 months, with an average spend of just over £1m per company.
For further information please contact SDGYoungLeaders or you can reach us at:
- Annabel Brodie-Smith (AIC: Communications Director) – 020 7282 5580
- Jemma Jackson (AIC: PR Manager) – 020 7282 5583
- Lisa Flounders (AIC: PR and Marketing Executive ) – 020 7282 5551
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