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How to sell your VCT shares
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A share buyback facility allows existing VCT investors to sell their shares back to the VCT at a small discount to their value, known as Net Asset Value (NAV). The NAV is the combined value of all the assets owned by the VCT after deducting the value of its liabilities (such as debts).
The current policy agreed by the Boards for the Octopus VCTs is to buy shares back at a 5% discount to the NAV. Share buybacks are conducted at the Board’s discretion and may be subject to amendment or cancellation, potentially at short notice. We can’t guarantee that shares will always be sold on request. It’s worth noting, however, that Octopus VCTs have a strong track record of buying back shares from investors.
There are three ways you can sell your VCT shares
1. Sell the shares back to the VCT through Octopus
You will need to send us the following items:
- Your completed VCT buyback form.
- Your completed CREST form (not required if you have Octopus Titan VCT ISA shares).
- Your original valid share certificate (we can’t accept scanned copies).
- Your bank details, along with proof of the account you want the funds to be paid into. We’ll accept a copy of a bank statement (dated within the last three months) or a void cheque.
Please send the completed forms to:
Octopus Investments
PO Box 10847
Chelmsford CM99 2BU
We need to run identity verification, and additional documents may be required. If so, we can accept:
- One form of ID (passport or driving licence)
AND
- One form of proof of address. We can accept a driving licence, a bank statement, or a recent utility bill (excluding mobile phone) dated within the last 3 months.
OR
- An Octopus Identity Verification Certificate (IVC) completed by your financial adviser.
We’ll then facilitate the VCT buyback on your behalf, and send a sale confirmation letter along with your payment.
We’ll then facilitate the VCT buyback on your behalf, and send a sale confirmation letter along with your payment.
To check the validity of your VCT share certificates please call the VCT’s registrar (Computershare) on 0370 703 0000. Alternatively, you can check online.
If you hold an Octopus Titan VCT ISA, the process will vary depending on what you’d like to do with your sale proceeds. So we can help you, please get in touch on 0800 316 2295 or email [email protected].
2. Sell the shares back to the VCT through the VCT’s corporate broker
Please contact Panmure Gordon on 020 7886 2716. They will talk you through the options.
Panmure Gordon will explain the process, fees and charges. You’ll then need to send the documentation they request. They’ll then facilitate the VCT buyback on your behalf, and send a sale confirmation letter along with your payment.
3. Sell them on the secondary market, the same way you would sell any other shares
VCT shares trade on the London Stock Exchange, so you can buy or sell them at any time through a stockbroker. Be aware though that the share price offered in the secondary market is usually less than the NAV of the shares.
This is because previously owned VCT shares do not qualify for the 30% upfront income tax relief. As a result, selling shares directly into the market can produce a poor result as acquiring investors will factor in they will not benefit from upfront income tax relief. This is why investors usually prefer to sell their shares back to the VCT directly or via the corporate broker.
We do not offer investment or tax advice
We always recommend investors talk to a financial adviser before making investment decisions.
This advertisement is not a prospectus. Investors should only subscribe for shares on the basis of information contained in the prospectus and Key Information Documents (KID) on the relevant product page.