Purchasing Existing VCT Shares

VCT shares can be bought and sold just like any other shares listed on the London Stock Exchange. The attractive discounts to the NAV make them excellent opportunities for investors.

If you want a high level of income, the earlier example shows that it can be worthwhile purchasing mature VCT shares for their tax-free yields and consistency of returns.

If you're looking to build capital, secondary purchases of VCT shares can complement your existing pensions, ISAs and VCTs, and are an attractive option if your pension is affected by the lifetime allowance provisions.

Of course, VCTs are higher risk investments than some other collective investment vehicles, and for that reason should form part of a wider portfolio – but many sophisticated investors and/or their advisers should be considering existing VCT shares when building diversified portfolios.

Several of Aberdeen's mature VCTs paid tax free dividends in excess of 4.0pence per share last year and the Boards of those companies have committed to target similar levels in future, subject to maintaining the net asset value of the individual funds. Our VCTs follow a strategy of widely diversifying the portfolio, using both unlisted and AIM investments, to spread and reduce risk. Our market-leading investment team, located throughout the UK, is able to source companies with the potential to succeed in the medium to long term.

KEY FACTS

• Discounts should narrow on successful, high yielding VCTs.
• VCT tax breaks are still hard to beat
• Existing shares offer tax-free yields and tax-free disposals
• Consistent yields are being generated
• There is no minimum holding period

If you are interested in buying shares in any of the Aberdeen VCTs, please contact your Stockbroker or Investment Adviser.