Buying Shares

Shares in the Baronsmead VCTs are listed on the London Stock Exchange. New shares are made available through Offers for Subscription. Existing shares can be bought through a stockbroker of authorised dealing service.

Prospective investors should consider carefully the risks associated with this form of investment, and seek advice from an appropriately qualified financial or other adviser.

Investment in smaller companies which are unquoted, or traded on AIM or ISDX Markets, by its nature, involves a higher degree of risk than investment in larger companies. Trading in VCT shares is not particularly active, so shares tend to be valued at a discount to their net asset value and may be difficult to realise. As a result, Shareholders may be offered a price which is less than the full value of the underlying assets. The spread between the buying and selling price of such shares may be wide and thus the price used for valuation may not be achievable.

Click below on the types of shares you are interested in buying:

Buying new shares

You can only buy new shares when one or more of the Baronsmead VCTs offers to issue new shares through an offer for subscription.

 

You can register to receive information about the next offer for subscription that is open to the public on this website.
Click here to register for information about Share Offers when they become available

Existing investors will automatically be sent information about offers that are relevant to them.

You can find out more about the tax reliefs available on investment in new VCT shares on this website.

Click here to view information regarding tax reliefs available for new VCT shares

Investment in smaller companies which are unquoted, or traded on AIM or ISDX Markets, by its nature, involves a higher degree of risk than investment in larger companies. Trading in VCT shares is not particularly active, so shares tend to be valued at a discount to their net asset value and may be difficult to realise. As a result, Shareholders may be offered a price which is less than the full value of the underlying assets. The spread between the buying and selling price of such shares may be wide and thus the price used for valuation may not be achievable.

Prospective investors should seek the advice of an appropriately authorised and qualified financial or other professional adviser to ensure an investment in VCTs is suitable, given their personal circumstances and that the VCT tax reliefs are applicable.

Prospective investors should read the sections of the website concerning General Risks, Investment Risks and Tax Related Risks before investing.

Buying existing shares

You can buy existing shares in the Baronsmead VCTs through your stockbroker or authorised share dealing service in the same way as other listed shares.

The prices of shares in the Baronsmead VCTs are shown in the Financial Times and can be found on many financial websites.

You can find out more about the benefits of investing in existing VCT shares on this website.
Click here to view information regarding the benefits of investing in existing VCT shares

Investment in smaller companies which are unquoted, or traded on AIM or ISDX Markets, by its nature, involves a higher degree of risk than investment in larger companies. Trading in VCT shares is not particularly active, so shares tend to be valued at a discount to their net asset value and may be difficult to realise. As a result, Shareholders may be offered a price which is less than the full value of the underlying assets. The spread between the buying and selling price of such shares may be wide and thus the price used for valuation may not be achievable.

Prospective investors should seek the advice of an appropriately authorised and qualified financial or other professional adviser to ensure an investment in VCTs is suitable given their personal circumstances and that the VCT tax reliefs are applicable.

Prospective investors should read the sections of the web site concerning General Risks, Investment Risk and Tax Related Risks before investing.

Comparison of new & existing shares

A summary of the tax benefits available to qualifying investors looking to subscribe for or purchase existing VCT shares is shown in the table below.

Summary of VCT Tax Reliefs New shares Existing shares
Income tax relief on amount subscribed Up to 30% * No
Are dividends free of tax? Yes Yes
Are gains made on the sale free of capital gains tax? Yes Yes

*The disposal of new VCT shares within five years of their issue will result in some or all of the 30% income tax relief available upon investment becoming repayable. On this basis, investing in new VCT shares should be considered a long-term investment.

Legislation came into force with effect from 6 April 2014 relating to linked subscriptions and sales of VCT shares which restricts the availability of income tax relief on a subscription for shares in a VCT issued after 5 April 2014 where it is 'linked' to a sale of shares in the same VCT. For these purposes, linked means (i) the sale of the shares in the VCT was conditional on the subscription for shares in the same VCT (or vice versa) or (ii) the subscription for shares in the VCT  and the sale of shares in the same VCT were within six months of each other (irrespective of which comes first). If the subscription is 'linked', the amount on which upfront VCT income tax relief can be claimed will be reduced by the amount of the consideration of any linked sales.

Qualifying investors are individuals aged 18 or over who are tax residents in the UK. An investor’s annual allowance for VCT investment is Ł200,000. This covers the acquisition of VCT shares by any means within a tax year. 

Investment Pricing New shares Existing shares
Basis of pricing Net asset value + cost of issue Share price (Normally at a discount to Net Asset Value of c.5%)
Additional costs:
Cost of issue Normally 3.0% of amount invested None
Stamp duty None 0.5%
Stockbrokers commission None Yes*

*Stockbrokers commission is dependent on the mechanism used, the firm chosen and the level of advice, if any, received.

Investment in smaller companies which are unquoted, or traded on AIM or ISDX Markets, by its nature, involves a higher degree of risk than investment in larger companies. Trading in VCT shares is not particularly active, so shares tend to be valued at a discount to their net asset value and may be difficult to realise. As a result, Shareholders may be offered a price which is less than the full value of the underlying assets. The spread between the buying and selling price of such shares may be wide and thus the price used for valuation may not be achievable.

Prospective investors should seek the advice of an appropriately authorised and qualified financial or other professional adviser to ensure an investment in VCTs is suitable, given their personal circumstances and that the VCT tax reliefs are applicable.

Prospective investors should read the sections of the website concerning General Risks, Investment Risks and Tax Related Risks before investing.

General risks

The past performance of the Baronsmead VCTs is not necessarily a guide to their future performance. The value of a VCT depends on the performance of the underlying assets. The value of the investment and dividend stream from the Baronsmead VCTs can rise and fall. Shareholders may get back less than originally invested, even taking the tax reliefs into account. There can be no guarantee that investment objectives of any of the Baronsmead VCTs will be achieved.

Market risks

Investment in unquoted, AIM-traded and ISDX Markets-traded companies, by its nature, involves a higher degree of risk than investment in companies traded on the main market. In particular, smaller companies often have limited product lines, markets or financial resources and may be dependent for their management on a smaller number of key individuals. In addition, the market for shares in smaller companies is often less liquid than that for shares in larger companies, bringing with it potential difficulties in acquiring, valuing and disposing of such shares.

Investments held by the Baronsmead VCT’s may be difficult to realise. The fact that a share is traded on AIM or PLUS-Markets does not guarantee its liquidity. The spread between the buying and selling price of such shares may be wide and thus the price used for valuation may not be achievable. Any change of governmental, economic, fiscal, monetary or political policy could materially affect, directly or indirectly, the operation of the Company and/or its ability to achieve or maintain final VCT status.

Tax related risks

The information on this web site is based on existing legislation, including taxation legislation. The tax reliefs described are those currently available. The tax rules or their interpretation in relation to an investment in the Baronsmead VCTs and/or rates of tax may change during the life of the Baronsmead VCTs and any such changes can be retrospective. Changes in legislation concerning VCTs in general, and qualifying holdings and qualifying trades in particular, may limit the number of new qualifying investment opportunities and/or reduce the level of returns that would otherwise have been achievable. The value of tax reliefs depends on the personal circumstances of the holders of the share in the Baronsmead VCTs, who should consult their own tax advisers before making any investment.

While it is the intention of the Directors of the Baronsmead VCTs that they will be managed so as to continue to qualify as VCTs, there can be no guarantee that the Baronsmead VCTs will maintain VCT status. If a company that has been granted approval as a VCT subsequently fails to comply with the conditions for approval, approval as a VCT may be withdrawn. In these circumstances, relief from income tax on the initial investment is repayable unless loss of approval occurs more than five years after the issue of the relevant VCT shares. In addition, relief ceases to be available on any dividend paid in respect of profits or gains in any accounting period ending when VCT status has been lost and any gains on the VCT shares up to the date from which loss of VCT status is treated as taking effect will be exempt, but gains thereafter will be taxable.