Hargreaves Lansdown is launching a new VCT online service that aims to help boost investment in the early stages of entrepreneurial UK companies.
The new client offering is starting with five VCTs, namely Octopus AIM VCT, Octopus AIM VCT 2, Octopus Apollo VCT, Blackfinch Spring VCT and Calculus VCT.
These additions are part of 49 existing VCTs on the HL platform.
Emma Wall, head of platform investments, Hargreaves Lansdown said: “HL’s new VCT online service will broaden our client offering, support the VCT investment market and help shape it for the future. After the commitment made by the Government to extended VCTs to 2035, and given the tax changes announced in the Budget, VCTs are a great way for people to invest their money in a tax-efficient way, over the longer term, as part of a diverse investment portfolio.
“We’re delighted to partner with Octopus Ventures, Calculus, and Blackfinch Investments to launch our new service with five initial VCTs, which will invest in AIM businesses and key sectors of the UK economy.
“The VCT market has been a vital tool for entrepreneurial UK businesses to get the seed funding they need to kick-start their enterprise for nearly 30 years, which has helped the UK to be one of the best places in the world to start a business.
“Using our market leading position and scale, our VCT service has the potential to help the VCT market grow in the future, delivering favourable returns for investors, and support more businesses at the start of their growth journey.”
The most recent National Audit Office statistics shows that in 2022 to 2023, over 26,000 VCT investors claimed income tax relief on £985 million of investment, and the table below provides an insight into the increase in flows into VCTs over the last few tax years.
Jess Franks, head of investment products, Octopus Investments: “It’s great to see Hargreaves Lansdown coming back to the world of VCTs, offering suitable retail investors the opportunity to access exciting, early-stage private companies.
“What this shows is how VCTs are continuing to become a more mainstream part of investing for those clients who undertake their own planning and are comfortable with the risks associated with the asset class. This launch also comes at a good time, with the government’s recent extension of VCT legislation until April 2035.”
John Glencross, chief executive of Calculus Capital: “Hargreaves Lansdown’s welcome return to the VCT market is a positive development for both investors – particularly in the post-Budget, higher-tax environment – and the broader UK economy. VCTs play a crucial role in providing funding to small and growing businesses, the backbone of innovation and job creation in the UK.
The Calculus VCT – available through Hargreaves Lansdown – offers investors a diverse portfolio of companies across a unique sector mix of Healthcare, Technology and Entertainment.”
Alex Sumner, commercial & investment director, Blackfinch Ventures: “We are delighted to be amongst the first partners for Hargreaves Lansdown as they expand their client offering to include Venture Capital Trust investments. The UK remains one of the best places in the world to launch and grow an ambitious start-up.
As McKinsey reported, out of Europe’s top 1,000 high-growth start-ups, 319 are UK-based. The tax incentives available through VCTs are undoubtedly one of the reasons for this success.
For investors, this doesn’t just mean 30% upfront tax relief and strong return potential – it also means helping the UK’s brightest entrepreneurs to build a better future. With a strong track record and the expertise of our skilled investment team, the Blackfinch Spring VCT provides investors with an opportunity to back the growth of these innovative technology-enabled companies across the UK.”
