Article Abstract:
UK investors can use specialist funds to gain access to the venture capital market. Minimum investment needs can deter investors in private equity funds but investors can prchase shares in 3i which was floated in 1994 and which has shown strong net asset performance. Candover Investments has also shown good growth as has the Foreign and Colonial Enterprise Trust. The UK business angel market allows retired managers with substantial funds to help unquoted companies both by providing funds and management skills.
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Article Abstract:
UK venture capital trusts (VCTs) have not met the target set by the UK chancellor when they appeared in the 1993 budget. Investors are allowed to invest to a maximum of 100,000 in VCTs in each fiscal year, benefiting from a 20% income tax rebate. Capital gains on other assets can be moved to a VCT and deferred until the sale of the VCT. Investors have been influenced by the performance of the Business Expansion Scheme. Trusts have the advantage of allowing risks to be diversified.
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Article Abstract:
UK venture capital trusts (VCTs) with tax concessions are being launched in Sep 1995. The trusts are only permitted to invest in small companies and involve high risk levels. Income tax relief is availbale for investors of 20% of money invested. Investors should not be over-hasty in investing in these trusts. There are good reasons for waiting until a number of new trusts are on offer in order to benefit from a wider selection, though the best deals may be sold first.
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