Close Technology & General VCT to raise £25 million

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Close Technology & General VCT to raise £25 million

Wed 2nd Nov 2005

With the Venture Capital Trust (VCT) season well under way, the Close Technology & General VCT has said it is looking to raise £25 million.

As the 40 per cent income tax rebate, which ends at the end of April 2006, is driving up sales, experts predict that total sales could exceed last year’s £507 million record.

However, bestinvest is continuing to urge investors to choose their VCT carefully.

For certain VCT’s the Total Expense Ratios (TERs) remain high, between three to four per cent. Investors should check whether the manager’s of the individual VCTs are at such a level of expertise to charge such fees.

Meanwhile, the Close Technology & General VCT remains a good choice as it is already established and thus cannot abort during launch, which is often a danger if VCTs do not raise sufficient funds.

Finally, VCTs do offer an "excellent tax-efficient investment opportunity", if customers choose their VCT wisely.