Investing Show: You get 30% tax relief and tax-free dividends but should you invest in a VCT?
Investors have flocked to VCTs over the past few years, attracted by their 30 per cent tax relief and tax-free dividends.
But experts say that you should never buy into an investment based on tax benefits alone.
So, what do VCTs invest in, how can you find a good one, and how can you make sure you aren’t taking too much risk?
Alex Davies, chief executive and founder of Wealth Club, joins Simon Lambert, of This is Money, to explain why investors have been snapping up VCTs, how they invest in early stage companies and why acting early if you want to invest is wise.
Watch the show below.