"The lack of appetite for UK smaller companies and an "on-again, off-again" approach to tax reform has been a toxic combination for AIM. Hargeave Hale, like most AIM VCTs, hasn't escaped the damage, losing investors 39.5% over five years. The big question for VCT investors though is not what's gone before, but what the future holds. The decline in AIM valuations has left the VCT with an exceptionally well diversified, and by VCT standards remarkably low risk, portfolio."
"Investors can get up to 30% back in income tax relief up front, falling to 20% next tax year, any dividends paid by the VCT are tax free and growth is free of capital gains tax too. However, VCTs are more than just a tax planning tool. They're probably the best way for UK investors to access fast growing smaller companies."
The Hargreave Hale AIM VCT has launched an offer for up to £30 million (£20 million plus a £10 million overallotment). The VCT holds total net assets of £129.5 million and a portfolio of more than 54 companies. The VCT primarily invests in AIM, but falling AIM valuations have produced a diversified portfolio including Marlborough managed equity funds and blue chip bonds. The VCT delivered a NAV total return of -39.5% over the five years to December 2025 and targets an annual dividend equal to 5% of NAV. Portfolio ballast includes 17.6% in main market listed companies and 16.4% in blue chip bonds. VCT tax benefits include up to 30% income tax relief up front (falling to 20% next tax year), tax-free dividends and capital gains tax-free growth. VCTs provide access to fast-growing smaller companies with revenue growth that outstrips main market peers.
Read at London Business News | Londonlovesbusiness.com
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