Mobeus VCTs Could Be a Tax Efficient Investment

Just an interesting release we spotted earlier today; investors are looking for the most tax efficient way to make a return. Here’s the word.

Four Mobeus VCTs launched at 9am on Monday 17^th October seeking to raise £76m. They raised a staggering £45 million within the first 24 hours – with over £24 million raised in the first three hours alone. The Mobeus scheme is UK government backed and can offer a VAT tax benefit to companies who invest too. Here’s an extract from the 2021 Mobeus investor report;

“In making their investment in a VCT, Shareholders become eligible for several tax benefits under VCT tax legislation, as long
as the Company also complies with VCT tax legislation. To achieve this, the Company must meet a number of tests set by
HMRC as set out on page 7 under “Summary of VCT Regulation”. Throughout the year ended 31 March 2021, the Company
continued to meet these tests.”

Obviously VCTs are interesting for private client brokers, as they can advise HNW clients on the benefits.

Alex Davies, CEO and founder of Wealth Club says: “With a whopping £45 million raised in the first 24 hours, this is the fastest-selling VCT offer we have seen. Despite the gloomy economic outlook, investors are still exceptionally keen to invest and support early-stage businesses when the right opportunity is presented to them.

The demand for the Mobeus VCTs comes as no surprise. They have been the top four performing VCTs over both five and 10 years and have always had a hugely loyal following. Indeed, more than 1,500 of clients had registered their interest in the offer even before it opened.

That said, with tax rates back to their highest in 70 years and restrictions on the amount wealthier investors can hold in a pension showing no signs of abating, we expect demand for VCTs in general to remain strong this year.”