The Titan VCT is set to become “massively more attractive” as Octopus Investments opens up the tax advantageous fund to Isa investors ahead of its largest ever fundraise.
Titan is targeting £120m with under its latest fundraise with the potential for a further £80m.
Octopus Investments managing director Paul Latham says enabling people to invest through their Isa opens up the VCT market to more investors. “We want to give people the opportunity to access the planning benefits of a VCT and the growth potential of some of the UK’s most exciting growth companies.”
Wealth Club chief executive Alex Davies says: “This latest move makes Titan massively more attractive. You can now invest in it through an ISA without having to part with a penny of new money and also get up to 30 per cent tax relief.”
Last week Octopus, Mobeus, Albion and Downing all opened their VCT offers taking the total number of open offers up to a target of £548m, nearly three times the same period last year.
“Once the rest of the offers open, this is likely to be the biggest VCT year ever,” says Davies.
The average generalist VCT has delivered 59 per cent over five years and 94.4 per cent over 10 years, according to AIC data. The FTSE 100 has delivered 57 per cent and 72 per cent respectively over those periods.
Titan VCT fund manager Jo Oliver says the UK entrepreneurial scene has thrived since launch 10 years ago.
“Europe has become a hub for building world-class technology companies. In 2010 there were only two European tech businesses valued over $1bn and yet there are now nearly 50, only seven years later. Eighteen of these are headquartered in the UK,” Oliver says.
VCTs provide up to 30 per cent upfront income tax relief if shares in the VCT are held for at least five years, as well as tax-free dividends and tax-free growth.
The share offer is open until 4 September 2018, but may close earlier. The minimum investment is £3,000 while the maximum investment qualifying for tax relief is £200,000.