My plan at 55. Is my thinking correct?

jamesd

To get the initial tax relief and ongoing tax exempt dividends you have to buy shares in the VCT, £45,000 worth in my later example. If you sell within the first five years you have to repay the initial 30% tax relief. After that you can sell to get the £45,000 out, or any part of it. Though for the one I mentioned you should expect about ten percent capital loss after five years, at least for planning purposes. That's because of purchase fees and the discount to the value of the assets that the manager will buy the shares at if nobody is offering a better price. Also because I assume that profits are paid out as dividends instead of being kept in to increase the price, which is what is normally done by VCTs because the dividends are tax exempt.

It's shares because like ETFs and investment trusts this form of collective investment is traded on the normal stock markets.