Enterprise Investment Scheme and Venture Capital Trust specialist Calculus Capital is to waive initial fees on its new VCT until the end of the year.
The firm explained that most providers charge “promoter fees” of between 3% and 5% – Calculus will waive this fee if a subscription is made before the end of the year.
Calculus launched its first VCT over a decade ago and it told GBI Magazine that its funds have consistently hit their dividend targets.
The new Calculus VCT fund, which invests alongside Calculus EIS funds, is aiming to deliver an annual dividend of 4.5% from summer 2019. VCT investments attract 30% income tax relief if held for five years. Dividends are tax free too, and there is no capital gains tax on the sale of shares.
The Calculus VCT is expected to be invested in a diversified portfolio of 30 companies. Investors can commit from £5,000 to £200,000,
New rules introduced under the Finance Bill 2017/18 mean EIS and VCT funds have to be invested in genuinely entrepreneurial companies with growth prospects, rather than low-risk asset-backed
schemes.
John Glencross, CEO of Calculus Capital, said: “We have been successfully identifying great companies with established momentum behind them and attractive growth prospects ahead for 20 years. We’ve never seen the level of entrepreneurial activity in the UK as strong as it is today – nor such an appetite from investors to back entrepreneurs. If you combine that with competitive management charges and this market-beating offer, it must make the Calculus VCT one of the most appealing available.”
