A Venture Capital Trust (otherwise known as a VCT) is an investment company, broadly similar to an investment trust, which has been approved by HMRC. Investors subscribe for shares in the VCT and this money, after fees have been deducted, is pooled and used by the investment manager of the VCT to invest in or lend money to small unquoted companies, including companies that are listed on AIM or the AQSE Growth Market. There are complex rules with which a VCT must comply that are designed to channel investments into small companies with certain characteristics, known as qualifying companies. For example, in most cases they must have less than 250 employees and gross assets of less than £15m. Most of the companies are registered in the UK.
By virtue of the size of the qualifying companies, investments in them (known as qualifying investments) carry greater risk than those made in larger companies, although they also have the potential to deliver significant capital growth over the medium to long term. To encourage investment into VCT schemes, the government has put in place a number of incentives in the form of income tax relief, dividend tax relief and capital gains tax relief. The income tax relief is only available on new shares issued by the VCT, whilst the dividend tax relief and the capital gains tax relief is available on new VCT shares and existing VCT shares bought through the London Stock Exchange.
The VCT shares themselves are quoted on the London Stock Exchange Main Market and can therefore be bought and sold at any time, although an investor will lose some or all of their tax reliefs if they sell their shares before the fifth anniversary of their issue. You should carefully review the ‘Risks of investing in VCTs’ section below for more details on this and on the risks of investing in VCTs.
The Alternative Investment Market, otherwise known as AIM, is the London Stock Exchange’s equity market for smaller, growing businesses. It is a deep and diverse market that is home to nearly 850 companies operating across multiple countries and sectors.
Small companies list on AIM to gain access to new capital, provide liquidity for their shareholders and enhance their reputation through their status as a plc. AIM companies have to abide by the rules set out in the AIM rulebook, which is often said to be a lighter touch regime than the listing rules that apply to companies listed on the London Stock Exchange's Main Market. AIM companies are sponsored by a nominated adviser (NOMAD), whose role it is to ensure the AIM rules are correctly applied, and make use of a broker to provide them with corporate and investor access and as a source of published research. In many cases, AIM companies appoint the same company as their broker and NOMAD.
Below is a summary of the tax benefits, which are based on current tax legislation and are subject to change at any time. The tax reliefs are available to investors over the age of 18 who pay UK income tax; they are dependent on the individual circumstances of the investor.
- Income tax relief of 30% of the sum invested, subject to a maximum investment of £200,000 in any tax year. Relief is limited to the amount which reduces the investor’s income tax liability to nil and is only available on shares issued through an offer; it is not available on shares purchased through the London Stock Exchange.
- Tax-free dividends, which may include capital distributions.
- Capital gains tax exemption on the disposal of ordinary shares in a VCT.
Example effect of initial income tax relief
- Cost of investment 100.0p
- Cost of investment net of tax relief 70.0p
- Initial net asset value 96.5p
- Initial uplift (%) 37.9%
Investors who hold their VCT shares for less than five years may have to repay some or all of their 30% initial income relief.
Below is a summary of the key risks associated with investing in VCTs.
- Risks specific to VCTs. The primary focus of VCTs’ portfolios is in investments in AIM-traded and unquoted companies. Investment in such companies, by its nature, may involve a higher degree of risk than investment in companies traded on the main market of the London Stock Exchange. In particular, AIM-traded and unquoted companies are often smaller companies which may have limited product and service lines, markets or financial resources and may be dependent for their management on a smaller number of key individuals.
- Legislative and policy risk. Any change of governmental, economic, fiscal, monetary or political policy, in particular any changes to taxation, tax reliefs and changes to the VCT Rules, could materially affect, directly or indirectly, the operation and/or the performance of the VCT (and the portfolio companies in which it invests), the number of qualifying investment opportunities available, the value of and returns from the shares in the VCT and/or the ability of the VCT to achieve or maintain its status as a venture capital trust.
- Risks to the tax reliefs. Whilst it is the intention of the directors that the VCT will be managed so as to continue to qualify as a VCT, there can be no guarantee that the VCT will maintain VCT status. A failure to meet the qualifying requirements could result in the loss of tax reliefs previously obtained, resulting in adverse tax consequences for investors, including a requirement to repay the income tax relief obtained, and could also cause the VCT to lose its exemption from corporation tax on capital gains.
- Shareholders who dispose of their VCT shares within five years of issue will be subject to clawback by HMRC of any income tax reliefs originally claimed on subscription. Therefore, an investment in a VCT will not be suitable for every type of investor and should be considered as a medium to long-term investment with a minimum holding period of five years. The tax consequences for an investor of holding shares in the VCT will depend on an investor’s individual circumstances and may be subject to change in the future.
- Risks that relate to VCT shares. VCT shares can be difficult to realise as there is a limited secondary market for shares in VCTs. Furthermore, it is likely that the price for a VCT share which an investor could achieve on the stock market is significantly less than the net asset value per share. The market value of, and the returns derived from VCT shares may go down as well as up and an investor may not get back the amount invested. The operation of the VCT’s buyback policy is intended to provide a degree of liquidity for investors but if the VCT is unable to maintain its buyback policy, investors may find it difficult to realise their investments. The past performance of the VCT or other funds managed or advised by the investment manager is not a guide to the future performance of the VCT.
Investors should therefore note that an investment in a VCT such as the Hargreave Hale AIM VCT carries a high level of risk and such investment will not therefore be suitable for all investors. You should not therefore act upon any information contained on this website without first consulting a financial or other professional adviser. Further information on the investors for whom an investment in the VCT may be suitable is set out in the Key Information Document.
The Hargreave Hale AIM VCT latest annual report, factsheet and prospectus can be found in the document library. These documents include a more comprehensive list of the risks associated with this product. Please ensure that you have read and considered carefully each of the risks identified in these documents before investing in the VCT.
We are aware that some shareholders have been contacted by an overseas third-party firm. This company is attempting to engage and exploit them by advising they have additional new shares in the Company following a corporate action. They are then offering to buy these shares at an inflated price.
There is a warning on the FCA website about this firm operating in the UK without FCA authorisation. If you deal with this company, you will have no access to the Financial Ombudsman Service or be protected by the Financial Services Compensation Scheme (FSCS).
Please be vigilant and should you receive such a call please contact the administration office in Blackpool on 01253 376622 where we can provide you with further information and assistance.
There are many types of fraud, and they can be difficult to spot. Fraud can happen at any time in numerous ways.
For further information on the types of fraud and how to protect yourself from scams, the FCA has a useful consumer page that can be found by following the below link:
Their page also contains useful links to the Action Fraud, Take 5 and MoneyHelper websites that contain further advice on the basic steps everyone should take to avoid scams.
Hargreave Hale AIM VCT plc. Registered Office: Talisman House, Boardmans Way, Blackpool, FY4 5FY. Incorporated in England and Wales. Company number 05206425. Canaccord Genuity Asset Management Limited (CGAM), (previously known as Hargreave Hale Limited) acts as the investment manager of Hargreave Hale AIM VCT plc. CGAM is authorised and regulated by the Financial Conduct Authority with firm reference number 209741.
Canaccord Genuity Wealth Limited acts as the administrator of Hargreave Hale AIM VCT plc and as the custodian of the assets of Hargreave Hale AIM VCT plc. Canaccord Genuity Wealth Limited is authorised and regulated by the Financial Conduct Authority with firm reference number 194927. This website is operated by Canaccord Genuity Wealth Limited. For further details, click here.
The materials contained herein have been prepared for use solely by individuals who are resident in the United Kingdom for tax and investment purposes. The materials contained herein are not for release, publication, or distribution, directly or indirectly, in whole or in part, to US persons or into or within the United States (including its territories and possessions, any state of the United States and the District of Columbia), Australia, Canada, Japan, the Republic of South Africa or any other jurisdiction where to do so would constitute a violation of the relevant laws or regulations of such jurisdiction.
There will be no public offering of the securities referred to herein and on the pages that follow in the United States, Australia, Canada, Japan, the Republic of South Africa or any other restricted jurisdiction. The securities referred to herein and on the pages that follow may not be offered, sold, resold, pledged, delivered, distributed or otherwise transferred, directly or indirectly, into or within the United States, Australia, Canada, Japan or the Republic of South Africa or to any national, resident or citizen of the United States, Australia, Canada, Japan or the Republic of South Africa. Potential users of this information are requested to inform themselves about and to observe any such restrictions.
The information on the pages that follow may contain forward‑looking statements. Any statement other than a statement of historical fact is a forward‑looking statement. Actual results may differ materially from those expressed or implied by any forward‑looking statement. The Company does not undertake any obligation to update or revise any forward‑looking statements, whether as a result of new information, future events, or otherwise. You should not place undue reliance on any forward‑looking statement, which speaks only as of the date of its issuance.
By using this website you confirm that you have read, understood, and accepted these conditions, including (without limitation) the risks noted below which may be involved in investing in the shares of the Company. The Company may change these conditions. The changes will be posted on the website and you should check regularly to see any changes or updates to these conditions. Your access to this website is governed by the version of these conditions then in force.
1. Terms and conditions
The terms and conditions set out below apply to your use of the Company’s website. Please read them.
The "Company" or the "VCT" means Hargreave Hale AIM VCT plc and references to "the Company’s website" are to the website available at www.hargreaveaimvcts.co.uk and also include, but are not limited to, the text, documents, images, links, sounds, graphics, and video sequences displayed on the website (the "Materials").
The Company’s website is operated by Canaccord Genuity Wealth Limited (“CGWL”). CGWL is a private limited company incorporated in England and Wales with company number 03739694 and has its registered office at 88 Wood Street, London, England EC2V 7QR. CGWL is authorised and regulated by the Financial Conduct Authority with firm reference number 194927. Details of CGWL’s registration can be found on the FCA’s website at https://register.fca.org.uk/s/.
By clicking and entering www.hargreaveaimvcts.co.uk you agree that you have read and accept these terms and conditions. If you do not agree, do not use www.hargreaveaimvcts.co.uk.
2. Intended audience and access to the Company's website
No information contained on the Company's website or in the Materials should be taken as a recommendation, offer or invitation to buy, sell, hold or otherwise deal with the shares or other financial instruments of any entity nor is it intended to solicit any such offer or invitation. Nothing on the Company’s website or in the Materials constitutes or is intended to constitute investment or other advice (including, without limitation, legal or tax advice) or investment research and you should not act upon any information contained on the Company’s website or in the Materials without first consulting a financial or other professional adviser.
The information in the Company’s website is only for the attention of individuals who are resident in the United Kingdom for tax and investment purposes. It is your responsibility to be aware of and to observe all applicable law and regulation in the United Kingdom. To the extent that you are not resident in the United Kingdom for tax and investment purposes, do not use this website.
The Company’s website is not intended to offer or to promote the offer or sale of the shares in the Company (the "Shares") in the United States or to US Persons. Each acquirer of the Shares will be deemed to represent, amongst other things, that (i) it is not in the United States, (ii) it is not a US Person or acquiring the Shares for the account or benefit of a US Person, and (iii) it is acquiring the Shares in an "offshore transaction" meeting the requirements of Regulation S under the Securities Act.
The content of the Company’s website constitutes a ‘financial promotion’ for the purposes of the UK regulatory regime. The content of the Company’s website has therefore been issued and approved for the purposes of section 21 of the Financial Services and Markets Act 2000 by CGWL which is authorised and regulated by the Financial Conduct Authority (with firm reference number 194927). Nonetheless, the content of this website does not constitute investment or other advice given by CGWL and you should not act upon any such content or the Materials without first consulting a financial or other professional adviser.
3. Risks of investing in VCTs
Investing in a VCT (including the Company) carries a high level of risk and it should be remembered that the price of shares in a VCT, and the income from such shares (if any), may go down as well as up. An investment in the VCT is only suitable for investors who are capable of evaluating the risks and merits of such investment and who understand the potential risk of capital loss (which may be equal to the whole amount invested). Further detail on the risks involved in investing in VCTs is set out in the “Risks of investing in VCTs” section on the front page of this website.
The latest annual report, factsheet and prospectus can be found in the document library. These documents include a more comprehensive list of the risks associated with this product. Please ensure that you have read and considered carefully each of the risks identified in these documents before investing in the VCT.
5. Limitation of liability
Use of the Company’s website and the Materials are at your sole risk. The Company and CGWL will not be liable to any person for any direct, indirect, special or consequential, losses, damages, or awards of any kind, howsoever caused, as a result of the use of or inability to use, or reliance on, the Company’s website or any of the Materials. To the maximum extent permitted by applicable law and regulation, the Company and CGWL exclude all warranties, conditions, terms, undertakings, and representations (excepting fraudulent misrepresentation) of any kind, express or implied, statutory or otherwise in connection with the Company’s website and the Materials. Nothing in these terms and conditions shall be taken to limit or exclude any liability which may not otherwise be limited or excluded under applicable law or regulation.
Nothing in this website should be construed as investment, tax, legal, or other advice, nor is it to be relied upon in making an investment decision. Those accessing the website should consult their financial advisers regarding the suitability of any of the products referred to on this website. The value of investments and the income from them may go down as well as up and an investor may receive back less than the original investment. Past performance is not necessarily a guide to future performance.
Trading in securities in smaller companies or a VCT (such as the Company) which invest in emerging markets may involve greater risks and be subject to more abrupt price movements than trading in securities of larger companies.
The Materials and the Company’s website are provided on an "as is" and "as available" basis and do not purport to be full or complete. The Company and CGWL give no warranties (express, implied, or statutory) as to satisfactory quality or fitness for purpose of the Materials, including, without limitation, as to the accuracy, validity, timeliness, merchantability, or completeness of any information or data contained therein (whether prepared by the Company or by any third party), or that any of the Materials or that the Company’s website will be provided uninterrupted or free from errors or that any identified defect will be corrected. The Company and CGWL have the right to suspend or withdraw the provision of all or any of the Company’s website or the Materials without prior notice at any time. You are entirely responsible for your use of the website and for the consequences of relying on any content. Further, no warranty of any kind is given that the Company’s website and the Materials are free from any virus or other malicious, destructive, or corrupting code, program, or macro. The Company and CGWL do not warrant that the Company’s website or the server(s) that make(s) them available are free of any virus or other harmful elements.
To the maximum extent permitted by applicable law and regulation, the Company and CGWL disclaim all liability to you arising out of your use of the website. In particular, the Company and CGWL shall not be liable for any direct or indirect loss or damage to you, any loss of profits, loss of business, revenue, data, goodwill, or anticipated or consequential loss or damage.
Reference in the Company’s website and/or the Materials to any hypertext link, product, process, or service does not imply the Company’s and/or CGWL’s support for, or endorsement or recommendation of the provider thereof or the product, process, or service to which reference is made. The Company’s website may contain hypertext links to other websites, resources, or other third parties. The Company and CGWL are not responsible for the availability of, and accepts no liability in relation to, these external websites or their contents. Each of the Company and CGWL is not a sponsor, partner, promoter, or publisher of any such website.
If any provision of these terms and conditions is found to be illegal, invalid or unenforceable, the invalidity of that provision shall not affect the validity of the remaining provisions of these terms and conditions which shall remain in full force and effect.
8. Governing law
The agreement between you and the Company relating to your use and browsing of the Company’s website is governed by and shall be construed in accordance with the laws of England and Wales and you agree that the Courts of England shall have exclusive jurisdiction over any disputes arising in relation to such use and browsing. These terms and conditions may not be modified unless the Company agrees in writing.
This website will use a cookie to confirm that this disclaimer has been acknowledged. The cookie lasts only as long as your browser is open and cannot be used to obtain any private data about you. You do not have to accept cookies from this site but, if you do not, you will be required to acknowledge these terms and conditions on every page. Please refer to the Company's cookies policy www.hargreaveaimvcts.co.uk for further information on how cookies are used.
10. The Materials that you are seeking to access are not directed at and may not be viewed by or distributed to persons who are resident outside the United Kingdom, including but not limited to:
- who are in the United States or who are, or are acting for the account or benefit of, US Persons; or
- who are in a jurisdiction where it is not lawful to access the Materials.
By clicking "I accept" below, you represent, warrant and agree that you (1) have read and understood the terms and conditions and other information set out above, (2) agree to be bound by its terms and acknowledge that the Company and its affiliates, subsidiaries, directors and advisers may rely on your agreement, (3) are permitted under applicable laws and regulations to receive the information contained in the pages that follow and, (4) agree that you will not transmit or otherwise send any information contained in this website to any person in the United States, to any US Person, or to publications with a general circulation in the United States. If you cannot so certify and agree, you must click the button labelled "I decline" or otherwise exit this website.