Albion Ventures has announced the launch of a new top up scheme, seeking to raise £15m across its VCTs.
The firm is targeting a monthly tax-free income of 5.7 per cent, equivalent to 8.1 per cent on the net cost of investment after up-front tax relief at 30 per cent.
Investors in the VCTs have the option to increase capital growth by taking part in its dividend reinvestment scheme.
The scheme works by reinvesting dividends in the form of new shares in Albion VCTs, allowing investors to benefit from a further 30 per cent tax relief on the value of the dividend received.
Albion Partners managing partner Patrick Reeve says: “Based on discussions with IFAs and wealth managers, we are expecting demand for our offers to be at least as strong this year as investors seek to access a reliable income stream and the prospects of capital growth that are offered by our portfolio of mature VCTs.
“Our VCTs appeal to investors both pre and post retirement. The latter often treat Albion’s VCTs as a type of pension supplement, enabling them to access a strong income stream while preserving their capital..The former regard it as a long term savings plan and mostly reinvest their dividends to get a further 30 per cent income tax relief on the value of their dividend. After retirement they can start taking the cash instead.