Sidekick launches new VCT to optimise tax for investors

Sidekick has announced the launch of its Venture Capital Trust (VCT) product in response to growing interest in tax-efficient investment options.

VCTs are gaining traction among a segment of investors identified as "tax optimisers," who are seeking high-growth investment opportunities while managing their tax liabilities amid economic uncertainties. The new offering from Sidekick aims to provide high-net-worth individuals with the means to optimise their tax positions by investing in early-stage UK companies.

The Sidekick VCT product offers up to 30% income tax relief and allows investors to earn tax-free dividends. This makes it particularly attractive to those who have already utilised their Individual Savings Account (ISA) and pension allowances. By offering such tax benefits, Sidekick is positioning its VCTs as a strategic investment option designed to cater to its financially ambitious client base.

"With some taxes already rising in the UK, and more hikes likely to come, we anticipate more investors turning towards products such as Venture Capital Trusts," stated Matt Ford, Chief Executive Officer and Co-founder of Sidekick. "Many of our clients have already leveraged ISAs and pensions and are now looking for strategic ways to significantly reduce their tax liabilities. Our VCT offering responds to this demand, delivering tax efficiency alongside access to high-growth, early-stage investments."

Ford also highlighted the advantages these trusts provide: "With VCTs, clients gain access to a hand-picked selection of high-growth companies, offering both a path for tax optimisation and potential growth opportunities - a timely and powerful tool for investors in the current economic climate."

The 2023/24 tax year saw VCTs raise GBP £882 million, reaching the third-highest figure in recorded history, which underscores the growing interest and importance of these investment vehicles in the current market scenario.

This newly launched VCT is the first of several alternative investment products that Sidekick plans to introduce. These offerings are typically available only to a select few, providing opportunities to invest in markets usually accessible to ultra-wealthy individuals. Sidekick's initiatives align with its strategy to expand the range of investment tools available to its clients, further solidifying its positioning within the investment community.