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Octopus Future Generations VCT – a quick-start guide

by | Mar 7, 2023

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For professional advisers and paraplanners only. Not to be relied upon by retail investors.

Venture Capital Trusts (VCTs) have become a valuable part of many clients’ portfolios. Where clients use their full ISA allowance and are restricted in making pension contributions, and are comfortable with the associated risks, VCTs can offer a complementary way to invest for the future tax-efficiently.

Investors can claim an attractive income tax relief equal to the value of 30% of their investment, alongside benefitting from tax-free capital gains and dividends. However, if these shares are sold within five years, investors are required to pay back the upfront income tax relief claimed.

 
 

Octopus Future Generations VCT invests in young, entrepreneurial businesses that are aiming to build a sustainable planet, empower people, or revitalise healthcare.

Octopus believes these businesses have the potential to transform the world for the better and deliver some of the best returns for investors over the coming decades. Why?

  • Because tackling society’s biggest challenges means there is a huge market opportunity forthose who can tackle them.
  • Because the demand for solutions to the planet’s challenges is urgent and growing.
  • And because people increasingly want to buy from and work for businesses that make a positive difference in the world.

The VCT is managed by Octopus Ventures, one of Europe’s largest venture capital investment teams1 and manager of the UK’s largest VCT, Octopus Titan VCT2. Octopus Ventures has built a reputation for backing innovative businesses that have gone on to be household names, including Depop, Graze and Zoopla. Octopus Future Generations VCT benefits from the same deal pipeline and assessment process as some of our existing venture capital investment products.

 
 

Example portfolio companies:

Building a sustainable planet: Neat provides insurance bundled with products and makes sure the items it insures are repaired or reconditioned, not automatically thrown away or replaced.

Empowering people: Cobee is a fully digital solution that simplifies employee benefits.

Revitalising healthcare: Oto is a digital health start-up that helps people with overlooked chronic conditions get their life back.

 
 

Discover some of the other companies that Octopus Future Generations VCT has backed.


Open offer details:

Section: VCT

Open date: 19 January 2023

Amount to be raised: £30 million

Min investment: £3,000

Octopus donates 10% of its annual management charge to Octopus Giving, their charitable foundation dedicated to helping charities that are aiming to make the world a better place.

Key risks to keep in mind

  • 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 depends on individual circumstances and may change in the future. 
  • Tax reliefs depend on the VCT maintaining its VCT-qualifying status. 
  • VCT shares are by their nature high risk, their share price may be volatile and they may be hard to sell. 

1 2021 Annual Interactive Global League Tables, PitchBook, 4 March 2022.

2 Association of Investment Companies, February 2023.

VCT investments are not suitable for everyone. This email does not constitute advice on investments, legal matters, taxation or any other matters. This advertisement is not a prospectus. Investors should only subscribe for shares based on information in the prospectus and Key Information Document (KID), which can be obtained from octopusinvestments.com. Issued by Octopus Investments Limited, which is authorised and regulated by the Financial Conduct Authority. Registered office: 33 Holborn, London, EC1N 2HT. Registered in England and Wales No. 03942880. We record telephone calls. Issued: Issued February 2023. CAM012799.

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