Puma VCTs

Shore Capital launched Puma VCT and Puma VCT II in early 2005 and Puma VCT III and IV in 2006 and Puma VCT V in 2008.  They provided the opportunity to invest, with a 40 per cent income tax relief in 2005 and 2006 and a 30 per cent income tax in 2008, in a growth capital/alternative asset fund managed by Shore Capital offering tax free returns. The Puma VCTs were some of the most successful VCT launches, raising assets of approximately £65million.

The Puma VCTs offered investors a clearly defined 5 year life. The first VCTs were launched in the mid ‘90s, but no VCT has yet wound up. Shore Capital is committed to winding up its VCT after five years (subject to investor vote) and returning the capital to investors. Our target is to double the net investment in 5 years, giving 15% p.a. tax free. The VCTs were structured with low initial costs for investors of 2 per cent, compared to typical 5-5½%. For every 100p invested, 98p is put to work (at a cost to the investor of 60p for Puma VCT I, II, III and IV and 70p for Puma VCT V). The strategy has an absolute return focus.

Given the 5 year life of the VCTs, the non qualifying strategy is as important as the qualifying. Non qualifying investments include a broad range of assets. The VCTs' focus for qualifying investments is on lower risk opportunities, whether in mezzanine finance, secured debt, equity or a mixture. Our VCT specialists are expert in structuring VCT deals and can offer finance to good companies on attractive terms.