Hargreave Hale AIM VCT
The Hargreave Hale AIM VCT is an established venture capital trust investing in some of the UK’s most exciting companies. Since its inception in 2004, it has consistently rewarded investors with strong performance and regular distributions of tax free dividends.
Today, the VCT has a diversified portfolio of small high growth UK companies, mostly companies listed on AIM, across a wide variety of sectors. Many of our most successful investments have been held for over 10 years. The VCT offers:
- Immediate access to an established diversified portfolio of high risk investments in small UK companies
- Tax free dividends and potential for significant capital appreciation
- An attractive HMRC approved tax structure that includes upfront income tax relief (minimum five year holding period)
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About the Hargreave Hale AIM VCT
Find out more about our AIM VCT's investment process and strategy.
See details of dividend payments to shareholders over the last five years.
Your VCT questions answered
What is a venture capital trust (VCT)?
A venture capital trust (VCT) is an HMRC-approved investment company, broadly similar to an investment trust, which invests in or lends money to small unquoted UK companies, including those listed on AIM.
Investors can claim income tax relief if they subscribe for new shares issued by the VCT through an offer. Dividends paid by the VCT are exempt from dividend tax. The VCT and its investors are also exempt from capital gains tax.
VCTs are highIy regulated. In return for the granting of tax reliefs, a VCT is required to comply with complex rules designed to channel investment into small VCT qualifying companies.
Broadly speaking, HMRC has defined a qualifying company as one that has a permanent UK establishment, undertakes certain business activities, has been trading for no longer than seven years, has fewer than 250 employees and gross assets of less than £15m. Some of these restrictons only apply at the point of investment. The VCT rules make various allowances for knowledge intensive companies (KICs). Visit our FAQs for more information on qualifying companies.
Why invest in a VCT?
Opportunity for investment growth
It's widely accepted that, when held for the medium and long term, investments in small companies have greater potential for significant capital appreciation than investments in large companies. At the same time, an investment in a small company carries a higher level of risk than an investment in a large company.
Potential tax advantages via an HMRC-approved scheme
To encourage investment into VCT schemes, the government has put in place a number of incentives in the form of income tax relief, dividend tax relief and capital gains tax relief. The income tax relief is only available on new shares issued by the VCT, whilst the dividend tax relief and the capital gains tax relief is available on new VCT shares and existing VCT shares bought through the London Stock Exchange.
In return for these tax reliefs, HMRC requires VCTs to comply with complex legislation that restricts investment activity to a tightly defined group of small high risk companies with a permanent UK establishment.
VCT shares themselves are quoted on the London Stock Exchange Main Market and can therefore be bought and sold at any time, although an investor will lose some or all of their tax reliefs if they sell their shares before the fifth anniversary of their issue. You should carefully review the section below for more details on this and on the risks of investing in VCTs.
Governance and transparency
A VCT benefits from an independent board of non-executive directors, regular updates on the net asset value of the portfolio of investments and annual audits. As the VCT's shares are listed on the main market of the London Stock Exchange, the VCT is required to comply with the regulation and disciplines required of a public company.
What are the risks of investing in VCTs?
Investment in a VCT such as the Hargreave Hale AIM VCT carries a high level of risk which will not be suitable for all investors. Further information on the investors for whom an investment in the VCT may be suitable is set out in our Key Information Document.
Here's a short summary of the main risks of investing in a VCT:
- Investing in AIM-traded and unquoted companies
The primary focus of VCTs is to invest in AIM-traded and/or unquoted companies. Investment in such companies, by its nature, may involve a higher degree of risk than investment in companies traded on the main market of the London Stock Exchange. In particular, AIM-traded and unquoted companies are often smaller companies which may have limited product and service lines, markets or financial resources and may be dependent for their management on a smaller number of key individuals.
- Changes to fiscal, economic or political policy
Any change of governmental, economic, fiscal, monetary or political policy, in particular any changes to taxation, tax reliefs and changes to the VCT rules, could materially affect, directly or indirectly, the operation and/or the performance of a VCT (and the portfolio companies in which it invests), the number of qualifying investment opportunities available, the value of and returns from the shares in the VCT and/or the ability of the VCT to achieve or maintain its status as a venture capital trust.
- Tax relief status
There can be no guarantee that a VCT will maintain VCT status. A failure to meet the qualifying requirements could result in the loss of tax reliefs previously obtained, resulting in adverse tax consequences for investors, including a requirement to repay the income tax relief obtained, and could also cause the VCT to lose its exemption from corporation tax on capital gains.
- Disposal of shares
Shareholders who dispose of their VCT shares within five years of issue will be subject to clawback by HMRC of any income tax reliefs originally claimed on subscription. Therefore, an investment in a VCT will not be suitable for every type of investor and should be considered as a medium to long-term investment with a minimum holding period of five years. The tax consequences for an investor of holding shares in a VCT will depend on an investor’s individual circumstances and may be subject to change in the future.
- Limited secondary market
VCT shares can be difficult to realise as there is a limited secondary market for shares in VCTs. Furthermore, it is likely that the price for a VCT share which an investor could achieve on the stock market is significantly less than the net asset value per share. The market value of, and the returns derived from VCT shares may go down as well as up and an investor may not get back the amount invested.
The operation of the Hargreave Hale AIM VCT’s buyback policy is intended to provide a degree of liquidity for investors but if the VCT is unable to maintain its buyback policy, investors may find it difficult to realise their investments. The past performance of the VCT or other funds managed or advised by the investment manager is not a guide to the future performance of the VCT.
To ensure you understand all the risks involved investing in a VCT, it’s important to first consult a financial or professional adviser. Do not rely solely on the information on this website.
The Hargreave Hale AIM VCT latest annual report, factsheet and prospectus can be found in the document library. These documents include a more comprehensive list of the risks associated with this product. Please ensure that you have read and considered carefully each of the risks identified in these documents before investing in the VCT. Further information on the investors for whom an investment in the VCT may be suitable is set out in the Key Information Document.
What is AIM?
AIM (the Alternative Investment Market) is the London Stock Exchange’s equity market for smaller, growing businesses. It is a deep and diverse market that is home to nearly 850 companies operating across multiple countries and sectors.
Small companies list on AIM to gain access to new capital, provide liquidity for their shareholders and enhance their reputation through their status as a plc. AIM companies have to abide by the rules set out in the AIM rulebook, which is often said to be a lighter touch regime than the listing rules that apply to companies listed on the London Stock Exchange's Main Market.
AIM companies are sponsored by a nominated adviser (NOMAD), whose role it is to ensure the AIM rules are correctly applied. They also make use of a broker to provide them with corporate and investor access and as a source of published research. In many cases, AIM companies appoint the same company as their broker and NOMAD.
What are the tax benefits of investing in a VCT?
Below is a summary of the tax benefits, which are based on current tax legislation and are subject to change at any time. The tax reliefs are available to investors over the age of 18 who pay UK income tax; they are dependent on the individual circumstances of the investor.
- Income tax relief of 30% of the sum invested, subject to a maximum investment of £200,000 in any tax year
- Relief is limited to the amount which reduces the investor’s income tax liability to nil and is only available on shares issued through an offer; it is not available on shares purchased through the London Stock Exchange
- Tax-free dividends, which may include capital distributions
- Capital gains tax exemption on the disposal of ordinary shares in a VCT.
Here is an example effect of initial income tax relief:
- Cost of investment 100.0p
- Cost of investment net of tax relief 70.0p
- Initial net asset value 96.5p
- Initial uplift (%) 37.9%
Investors who hold their VCT shares for less than five years may have to repay some or all of their 30% initial income relief.
The materials contained herein have been prepared for use solely by individuals who are resident in the United Kingdom for tax and investment purposes. The materials contained herein are not for release, publication, or distribution, directly or indirectly, in whole or in part, to US persons or into or within the United States (including its territories and possessions, any state of the United States and the District of Columbia), Australia, Canada, Japan, the Republic of South Africa or any other jurisdiction where to do so would constitute a violation of the relevant laws or regulations of such jurisdiction.
There will be no public offering of the securities referred to herein and on the pages that follow in the United States, Australia, Canada, Japan, the Republic of South Africa or any other restricted jurisdiction. The securities referred to herein and on the pages that follow may not be offered, sold, resold, pledged, delivered, distributed or otherwise transferred, directly or indirectly, into or within the United States, Australia, Canada, Japan or the Republic of South Africa or to any national, resident or citizen of the United States, Australia, Canada, Japan or the Republic of South Africa. Potential users of this information are requested to inform themselves about and to observe any such restrictions.
The information on the pages that follow may contain forward‑looking statements. Any statement other than a statement of historical fact is a forward‑looking statement. Actual results may differ materially from those expressed or implied by any forward‑looking statement. The Company does not undertake any obligation to update or revise any forward‑looking statements, whether as a result of new information, future events, or otherwise. You should not place undue reliance on any forward‑looking statement, which speaks only as of the date of its issuance.
By using this website you confirm that you have read, understood, and accepted these conditions, including (without limitation) the risks noted below which may be involved in investing in the shares of the Company. The Company may change these conditions. The changes will be posted on the website and you should check regularly to see any changes or updates to these conditions. Your access to this website is governed by the version of these conditions then in force.
1. Terms and conditions
The terms and conditions set out below apply to your use of the Company’s website. Please read them.
The "Company" or the "VCT" means Hargreave Hale AIM VCT plc and references to "the Company’s website" are to the website available at www.hargreaveaimvcts.co.uk and also include, but are not limited to, the text, documents, images, links, sounds, graphics, and video sequences displayed on the website (the "Materials").
The Company’s website is operated by Canaccord Genuity Wealth Limited (“CGWL”). CGWL is a private limited company incorporated in England and Wales with company number 03739694 and has its registered office at 88 Wood Street, London, England EC2V 7QR. CGWL is authorised and regulated by the Financial Conduct Authority with firm reference number 194927. Details of CGWL’s registration can be found on the FCA’s website at https://register.fca.org.uk/s/.
By clicking and entering www.hargreaveaimvcts.co.uk you agree that you have read and accept these terms and conditions. If you do not agree, do not use www.hargreaveaimvcts.co.uk.
2. Intended audience and access to the Company's website
No information contained on the Company's website or in the Materials should be taken as a recommendation, offer or invitation to buy, sell, hold or otherwise deal with the shares or other financial instruments of any entity nor is it intended to solicit any such offer or invitation. Nothing on the Company’s website or in the Materials constitutes or is intended to constitute investment or other advice (including, without limitation, legal or tax advice) or investment research and you should not act upon any information contained on the Company’s website or in the Materials without first consulting a financial or other professional adviser.
The information in the Company’s website is only for the attention of individuals who are resident in the United Kingdom for tax and investment purposes. It is your responsibility to be aware of and to observe all applicable law and regulation in the United Kingdom. To the extent that you are not resident in the United Kingdom for tax and investment purposes, do not use this website.
The Company’s website is not intended to offer or to promote the offer or sale of the shares in the Company (the "Shares") in the United States or to US Persons. Each acquirer of the Shares will be deemed to represent, amongst other things, that (i) it is not in the United States, (ii) it is not a US Person or acquiring the Shares for the account or benefit of a US Person, and (iii) it is acquiring the Shares in an "offshore transaction" meeting the requirements of Regulation S under the Securities Act.
The content of the Company’s website constitutes a ‘financial promotion’ for the purposes of the UK regulatory regime. The content of the Company’s website has therefore been issued and approved for the purposes of section 21 of the Financial Services and Markets Act 2000 by CGWL which is authorised and regulated by the Financial Conduct Authority (with firm reference number 194927). Nonetheless, the content of this website does not constitute investment or other advice given by CGWL and you should not act upon any such content or the Materials without first consulting a financial or other professional adviser.
3. Risks of investing in VCTs
Investing in a VCT (including the Company) carries a high level of risk and it should be remembered that the price of shares in a VCT, and the income from such shares (if any), may go down as well as up. An investment in the VCT is only suitable for investors who are capable of evaluating the risks and merits of such investment and who understand the potential risk of capital loss (which may be equal to the whole amount invested). Further detail on the risks involved in investing in VCTs is set out in the “Risks of investing in VCTs” section on the front page of this website.
The latest annual report, factsheet and prospectus can be found in the document library. These documents include a more comprehensive list of the risks associated with this product. Please ensure that you have read and considered carefully each of the risks identified in these documents before investing in the VCT.
5. Limitation of liability
Use of the Company’s website and the Materials are at your sole risk. The Company and CGWL will not be liable to any person for any direct, indirect, special or consequential, losses, damages, or awards of any kind, howsoever caused, as a result of the use of or inability to use, or reliance on, the Company’s website or any of the Materials. To the maximum extent permitted by applicable law and regulation, the Company and CGWL exclude all warranties, conditions, terms, undertakings, and representations (excepting fraudulent misrepresentation) of any kind, express or implied, statutory or otherwise in connection with the Company’s website and the Materials. Nothing in these terms and conditions shall be taken to limit or exclude any liability which may not otherwise be limited or excluded under applicable law or regulation.
Nothing in this website should be construed as investment, tax, legal, or other advice, nor is it to be relied upon in making an investment decision. Those accessing the website should consult their financial advisers regarding the suitability of any of the products referred to on this website. The value of investments and the income from them may go down as well as up and an investor may receive back less than the original investment. Past performance is not necessarily a guide to future performance.
Trading in securities in smaller companies or a VCT (such as the Company) which invest in emerging markets may involve greater risks and be subject to more abrupt price movements than trading in securities of larger companies.
The Materials and the Company’s website are provided on an "as is" and "as available" basis and do not purport to be full or complete. The Company and CGWL give no warranties (express, implied, or statutory) as to satisfactory quality or fitness for purpose of the Materials, including, without limitation, as to the accuracy, validity, timeliness, merchantability, or completeness of any information or data contained therein (whether prepared by the Company or by any third party), or that any of the Materials or that the Company’s website will be provided uninterrupted or free from errors or that any identified defect will be corrected. The Company and CGWL have the right to suspend or withdraw the provision of all or any of the Company’s website or the Materials without prior notice at any time. You are entirely responsible for your use of the website and for the consequences of relying on any content. Further, no warranty of any kind is given that the Company’s website and the Materials are free from any virus or other malicious, destructive, or corrupting code, program, or macro. The Company and CGWL do not warrant that the Company’s website or the server(s) that make(s) them available are free of any virus or other harmful elements.
To the maximum extent permitted by applicable law and regulation, the Company and CGWL disclaim all liability to you arising out of your use of the website. In particular, the Company and CGWL shall not be liable for any direct or indirect loss or damage to you, any loss of profits, loss of business, revenue, data, goodwill, or anticipated or consequential loss or damage.
Reference in the Company’s website and/or the Materials to any hypertext link, product, process, or service does not imply the Company’s and/or CGWL’s support for, or endorsement or recommendation of the provider thereof or the product, process, or service to which reference is made. The Company’s website may contain hypertext links to other websites, resources, or other third parties. The Company and CGWL are not responsible for the availability of, and accepts no liability in relation to, these external websites or their contents. Each of the Company and CGWL is not a sponsor, partner, promoter, or publisher of any such website.
If any provision of these terms and conditions is found to be illegal, invalid or unenforceable, the invalidity of that provision shall not affect the validity of the remaining provisions of these terms and conditions which shall remain in full force and effect.
8. Governing law
The agreement between you and the Company relating to your use and browsing of the Company’s website is governed by and shall be construed in accordance with the laws of England and Wales and you agree that the Courts of England shall have exclusive jurisdiction over any disputes arising in relation to such use and browsing. These terms and conditions may not be modified unless the Company agrees in writing.
10. The Materials that you are seeking to access are not directed at and may not be viewed by or distributed to persons who are resident outside the United Kingdom, including but not limited to:
- who are in the United States or who are, or are acting for the account or benefit of, US Persons; or
- who are in a jurisdiction where it is not lawful to access the Materials.
By clicking "I accept" below, you represent, warrant and agree that you (1) have read and understood the terms and conditions and other information set out above, (2) agree to be bound by its terms and acknowledge that the Company and its affiliates, subsidiaries, directors and advisers may rely on your agreement, (3) are permitted under applicable laws and regulations to receive the information contained in the pages that follow and, (4) agree that you will not transmit or otherwise send any information contained in this website to any person in the United States, to any US Person, or to publications with a general circulation in the United States. If you cannot so certify and agree, you must click the button labelled "I decline" or otherwise exit this website.
Investment involves risk and you may not get back what you invest. It’s not suitable for everyone.
Investment involves risk and you may not get back what you invest. It’s not suitable for everyone.