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LeggMason VCT marches on

LeggMason Investors has joined the army of companies offering venture capital trusts that invest in companies listed on AIM (alternative investment market).

The LeggMason AIM VCT enables clients who are looking for capital growth over the longer term to invest in smaller companies that have the potential to expand.

This VCT invests in unquoted companies that are listed on the alternative investment market (AIM). During the initial investment period, the money raised by the share subscription will go into quoted UK smaller companies and fixed interest securities.

Unlike some venture capital trusts that were open to investors earlier in the season, this VCT allows clients to make investments for this tax year and the 2001/2002 tax year.

Venture capital trusts are used by investors who want to defer paying capital gains tax on the profits from previous investments. As an added incentive, dividends from this VCT are paid out free from income tax.

The minimum investment into the LeggMason AIM VCT is £3,000, which widens its appeal beyond the high net worth client base. However, AIM listed stocks may be concentrated in volatile sectors such as technology and clients would need to be prepared to take a gamble on the sector picking up after recent turmoil.

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