Last week proved to be the biggest yet for VCT funding this tax year, with GBP46.4m being raised. Octopus Titan and ProVen took the bulk of this amount. Total VCT fundraising for 2018/19 amounts to GBP608.5 million so far, with GBP386.5 million raised in 2019 alone.
Commenting on the tax year demand, Alex Davies, CEO and founder of Wealth Club, says: “As the tax year draws to a close, VCT funding is less than 5% behind the 2017/18 total at the same point. Given the level of uncertainty regarding Brexit and the fact that much of last year’s business was rushed in before the November 2017 Budget following concerns VCT tax relief was about to be reduced, the amount raised is impressive.
“There are still a number of VCT options for anyone still looking to invest before the end of the tax year. Unlike ISAs most VCTs close at lunchtime 5th April (if not before) rather than midnight, it is therefore imperative to act quickly.”
“Traditionally most VCT business has been paper based rather than online which has made the process laborious for investors. It also means many investors applying by paper application towards the end of the tax year end up not getting their applications in on time and end up disappointed.
“The exception for this is Wealth Club. We introduced an online application process for VCTs in 2017, which means our investors can apply right up to the actual deadlines. Today Wealth Club is the only broker that allows investors to apply online for a VCT.”
Wealth Club is a broker of VCTs with a market share in excess of 11 per cent.
