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Investec Structured Products to launch VCT

Investec Structured Products is launching its first Venture Capital Trust in February in conjunction with Calculus Capital.

Investec says the VCT will be available for investment in both the 2009/2010 and 2010/2011 tax years.

The VCT offers the potential of tax relief of 30 per cent on the initial investment with all subsequent dividends and capital gains tax free.

Investec says it will invest in a combination of structured products and venture capital investments to diversify risk with the initial objective to achieve an annual dividend for five years of 5.25 pence per share plus a return of 43.75 pence per share after five and a half years by way of a special dividend or a cash tender offer for shares.

After this time the investor will still hold a portfolio of investments in qualifying companies within the VCT.

The structured products within the portfolio will be managed by Investec Structured Products and will have simple defined returns based on the FTSE 100 Index with pre-determined risk profiles and a diversified range of counterparties.

The venture capital investments will be managed by Calculus Capital.

Calculus launched the first Inland Revenue approved Enterprise Investment Scheme in 2000 and have since launched and closed for subscription a further eight EIS funds and two VCT issues.

Investec Structured Products head of intermediary sales Gary Dale says: “VCTs have the ability to offer excellent tax-planning opportunities and with the combined expertise of Investec Structured Products and Calculus Capital, this first issue aims to deliver strong investment returns as well as an element of capital protection.”

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