Reinvesting into another Octopus VCT
If you would like to sell your VCT shares and reinvest the proceeds into another Octopus VCT, please call our investor relations team on 0800 316 2295. We can let you know what options are available to you and answer any questions you may have.
Why reinvest with Octopus?
Octopus Investments is the largest provider of Venture Capital Trusts (VCTs) in the market¹. We launched our first VCT in 2002, and now manage more than £1.7 billion across a range of VCTs on behalf of more than 35,000 investors.2
If you choose to continue your investment journey with us, you’ll be eligible for a loyalty discount on another VCT investment as a thank you for your support.
Before making any decisions, we recommend you talk to a financial adviser who can help you decide what’s right for you.
Reinvest into another VCT
If you reinvest in another VCT you might be able to claim upfront income tax relief on your new investment.
As a reminder, VCTs can complement other investments by offering tax free growth and dividends. Investors can claim up to 30% upfront income tax relief on investments up to £200,000 in a tax year.
The six month rule
It’s worth noting that if you sell shares in a VCT within six months of buying new shares in the same VCT, you will NOT be able to claim any income tax relief on these shares.
If, however, you choose to sell shares in a VCT and buy shares in a different VCT, including any other Octopus VCT, you may be able to claim upfront income tax relief on your new shares immediately.
VCTs from Octopus
We have three VCTs, each taking their own investment approach:
Octopus Titan VCT
The UK’s largest VCT¹ invests in a portfolio of more than 90 early-stage businesses with high growth potential.
Octopus Apollo VCT
A portfolio of around 50 tech-enabled and proven businesses looking to grow.
Octopus AIM VCTs
Two VCTs featuring established portfolios of around 90 emerging AIM-listed companies.
A reminder of the VCT tax reliefs
Here’s a summary of the tax benefits VCTs offer:
Income tax relief
Investors can claim upfront tax relief equal to 30% of their investment on the first £200,000 per annum invested. Dividends and capital gains are also tax-free.
The tax-free dividends paid by a VCT can provide a supplementary income, which could be useful, especially if investors are approaching or in retirement.
Support UK growth businesses
Investing in a VCT means investors are helping innovative smaller companies to create jobs, prosperity and economic growth across the UK.
VCTs can help diversify an investor’s overall portfolio by giving them access to companies they may not otherwise hold.
A reminder of the key risks
Captial at risk
The value of a VCT investment, and any income from it, can fall as well as rise. Investors may not get back the full amount they invest.
Tax treatment may change
Tax treatment depends on individual circumstances and may change in the future. Tax reliefs depend on the VCT maintaining its qualifying status.
Five-year minimum holding period
Investors need to hold shares for a minimum of five years. If you decide to sell your shares before then, you will be required to repay to HM Revenue & Customs (HMRC) any upfront income tax relief you’ve claimed.
VCTs are a high-risk investment
VCTs invest in smaller companies that are often not listed on the main market of the London Stock Exchange. Investments in smaller companies can fall or rise in value much more sharply than shares in larger, more established companies. They can also be harder to sell.
We do not offer investment or tax advice
We always recommend investors talk to a financial adviser before making investment decisions.
¹Source: The Association of Investment Companies, April 2021.
2Source: Octopus Investments, 31 July 2021