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Julian Gibbs

The eTechnology venture capital trust has been launched with the intention


of investing in technology trusts and shares following the recent sharp


decline in prices.


It qualifies for 20 per cent income tax relief and 40 per cent capital


gains tax roll-over relief, with both profits and dividends being free of


tax


Initially, it will be invested 100 per cent in technology unit trusts and


investments trusts as well as a few individual technology companies.


VCTs do not have to buy qualifying shares for the first three years of


their lives but Cavendish Asset Management, which manages over £50m within


the technology sector, will be investing in qualifying companies as and


when suitable investments arise.


The chairman is Michael Teacher, chief executive of Hillsdown Holdings,


and another non-executive director is David Svendsen, who was formerly


managing director and chairman of Microsoft.


This is a brilliant way of investing in technology stocks after the recent


market fall and with the best possible tax breaks.


Some of the main holdings will be the Close Techmark unit trust, which is


33 per cent off its high, Framlington NetNet (about 30 per cent) and SocGen


technology and Aberdeen technology (around 24 per cent).


Technology shares will certainly rise again. They have always been a


rollercoaster ride and the time to get in is when prices are low and you


can have tax breaks.


Unlike most other VCTs, eTechnology always aims to be fully invested. While the amount of money that the eTechnology VCT can take is limited, I believe that there other technology offers in the pipeline.

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