Quester is looking to capitalise on the resurgence of technology related investments with the introduction of its fourth version of the venture capital trust, VCT 4.
It is aimed at investors who want to reduce the amount of tax that they pay and at the same time are willing to put up with a high degree of risk.
VCT 4 will invest in a spread of unquoted UK companies that appear to have good growth opportunities, including technology-related companies with international potential as well as companies with an established track record.
Venture capital trusts are exempt from capital gains tax and income tax on dividends received from UK based companies. Many VCTs cover a wide range of sectors to spread the investment risk, but VCT 4 has a specialised focus and it is not unique.
On the whole, VCTs have a greater degree of risk compared to other tax efficient products designed for the same purpose. This is because they tend to invest in small start-up companies which have a greater chance of failing than established larger ones.