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Amati AIM VCT FAQs

Please find below answers to some of the most frequently asked questions for Amati AIM VCT. Should you wish to discuss another query, please contact us on 0131 503 9115 or email info@amatiglobal.com.

General


Venture Capital Trusts (VCTs) were introduced by the Government in 1995 and were designed to encourage investment in early-stage companies by offering attractive tax benefits in return for the additional risks involved. The legislation has changed over the years, but at present the main tax reliefs available are as follows: income tax relief of 30% on subscriptions for new shares up to a value of £200,000 in each tax year, providing that the investment is held for five years; tax free dividends; and a capital gains exemption on disposal. VCTs are broadly similar to investment trusts and are listed on the Main Market of the London Stock Exchange, with independent Directors whose responsibility is to protect the interests of the shareholders in the VCT.


  • We believe that AIM provides VCT investors with access to some of the UK's most outstanding growth companies, and that these are well represented in the Amati AIM VCT portfolio.
  • Amati brings together a highly experienced team of fund managers whose sole focus is on UK smaller companies.
  • AIM based VCTs typically have a more diversified portfolio than other types of VCT, likely to be invested in larger more established companies, with transparent market pricing and reasonable liquidity.


If you know the number of shares that you hold, you can calculate the valuation by using either the NAV or share price that is published on our website. Please click here to view.

Alternatively, you can contact us on 0131 503 9115 or info@amatiglobal.com to request a valuation. Due to our data protection procedures we will require you to confirm two of the following security questions:

Full postal address
Investor ID
Date of initial investment
Shareholding
Recent dividend payment


You can view your shareholding via the online portal. To register for this service please click here


The NAV is published on our website and is updated on a weekly basis which you can view by clicking here


A change of address request must be processed by our registrars along with additional security information. Please complete a Change of Address form which should be submitted to Share Registrars to change your contact details on the register.

The completed form should be returned to:

Share Registrars Limited
The Courtyard
17 West Street
Farnham
Surrey
GU9 7DR

Alternatively, you can update your address via the online portal. To register for this service, please click here.

Change of Address form


If your change of name is due to marriage then you should send us a certified copy of your marriage certificate together with your share certificate(s). We will record the change of name and return the marriage certificate to you together with the endorsed share certificate(s).

If your change of name is due to divorce then you should send us a copy of your decree absolute and a copy of your birth certificate together with your share certificate(s). We will record the change of name and return the copy of your decree absolute and the copy birth certificate to you together with the endorsed share certificate(s).

If your change of name is by means of a deed poll then you will need to send us a certified copy of the deed poll for registration. We will record the change of name and return the copy deed poll to you together with the endorsed share certificate(s).

Documents should be sent to:

Share Registrars Limited
The Courtyard
17 West Street
Farnham
Surrey
GU9 7DR


Amati Global Investors cannot buy back shares directly from our VCT investors. If you wish to sell your shares you will need to do so through a broker, who will sell them via the market maker.

If you do not have an existing relationship with a broker, and would like further guidance on this, please do not hesitate to contact us on 0131 503 9115 or info@amatiglobal.com.

Although procedures will vary, possession of the relevant share certificate will be necessary to sell your shares. We will be happy to assist you in gathering any information you may need in respect of your investment.


We will note the death of a shareholder on the share register on receipt of an original copy of the death certificate. However, in order to enable us to recognise you as executor to an estate you will need to send us a Court sealed office copy of the grant of probate together with all of the share certificates representing the shareholding of the deceased shareholder. We will register the probate and return the Court sealed office copy of the grant of probate to you together with the endorsed share certificate(s).

The same procedure is required if you have been appointed as an Administrator to an estate, but in this case you will need to send us a Court sealed office copy of the grant of letters of administration.

If the shareholder died without leaving a Will, the value of the shareholding is less than £5,000 and the value of the estate is less than £20,000 then the small estates procedure may be appropriate. Please contact our registrar for further information.

Any documents should be sent to:

Share Registrars Limited
The Courtyard
17 West Street
Farnham
Surrey
GU9 7DR


The Prospectus Offer 2019/20 & 2020/21 is now closed having reached capacity in this £25m Offer. We won't currently be utilising the over-allotment facilty, however, the Investment Team will continue to monitor potential investment opportunities, and should these arise, we may then seek to raise further funds prior to the Offer closing on 16 October 2020.
To be notified of future offers, please contact our investor line on 0131 503 9115 or email info@amatiglobal.com


Fund fact-sheets are published monthly and are available on our website by clicking here. To receive our fund fact-sheets by email once available, please contact us on 0131 503 9115 or info@amatiglobal.com.

Dividends


Dividends for Amati AIM VCT are paid out annually, with the payments typically falling around July and November. Full details of any upcoming dividends can be viewed in the annual and interim reports, please click here to view the latest report. A full history of dividends paid to date can also ve viewed on our website by clicking here.


You should print off and complete the dividend mandate form and return it to our registrar at the following address:
Share Registrars Limited
The Courtyard
17 West Street
Farnham
Surrey
GU9 7DR

Alternatively you can update your bank details via the online portal. To register for this service please click here

Bank Mandate


If any holders have cheques that are out of date they can return them to us for re-dating. There is no charge for doing this providing the original cheque is returned. Please return the cheque to:
Share Registrars Limited
The Courtyard
17 West Street
Farnham
Surrey
GU9 7DR


You should print off and complete the DRIS form and return it to our registrar at the following address:
Share Registrars Limited
The Courtyard
17 West Street
Farnham
Surrey
GU9 7DR

Amati AIM VCT DRIS T&C's
DRIS Enrollment Form


You should print off and complete the dividend mandate form and return it to our registrar at the following address:
Share Registrars Limited
The Courtyard
17 West Street
Farnham
Surrey
GU9 7DR

Alternatively you can update your bank details via the online portal. To register for this service please click here

Bank Mandate

Share Certificates


A missing share certificate can only be replaced by means of the completion of a letter of indemnity by the shareholder. You should print off and complete the letter of indemnity in BLOCK CAPITALS and return to our registrar together with a cheque for £24.00 payable to Share Registrars Limited at the following address:

Share Registrars Limited
The Courtyard
17 West Street
Farnham
Surrey
GU9 7DR

Letter of indemnity


In order to split a certificate into two or more certificates, all we would require is instructions from the investor (with an original signature) together with the relevant share certificate(s). Please send the instruction to: Share Registrars Limited, The Courtyard, 17 West Street, Farnham, Surrey, GU9 7DR


Share certificates are typically issued around 10 working days following the allotment date and will be issued to the investor directly.


The only valid share certificates are under Amati AIM VCT and Amati VCT 2. If you hold any share certificates under the following names, these have now been replaced and can now be destroyed if you so wish:

  • First State AIM VCT
  • Noble AIM VCT
  • Noble Income & Growth VCT
  • Singer & Friedlander AIM VCT
  • Invesco Perpetual AIM VCT
  • Amati VCT

Tax Relief


  • Income tax relief can be claimed to the value of 30% of your investment subject to a VCT investment limit of £200,000 in each tax year, which can be set against any income tax liability that is due, whether at the lower, basic, higher or additional tax rate.
  • If subscription shares are sold or otherwise disposed of within five years the income tax relief will be lost, although this does not apply to transfers between spouses or in respect of deceased estates.
  • Dividends paid by VCTs are tax free, subject to an investment limit of £200,000 per year. This applies to dividends in respect of subscription shares as well as shares bought in the secondary market. Amati AIM VCT normally pays its final dividend in July (interim in November) and has a target annual dividend yield of 5%-6% of the year-end net asset value. Under the current tax legislation these dividends are free of any tax liability, subject to the investment limit of £200,000 in any tax year.
  • Shares in VCTs are exempt from Capital Gains Tax when they are sold, subject to the permitted maximum of £200,000 in any tax year. This applies to subscription shares as well as shares bought in the secondary market.
  • As an illustration of the effect of the tax reliefs available, and assuming that you are able to claim 30% income tax relief on your investment and that you paid the full 3% offer costs, a 5% dividend yield equates to a 6.9% yield on net investment, and a 6% dividend yield equates to an 8.3% yield on net investment.

The summary above is for illustrative purposes only and any potential tax benefits to investors will vary according to individual circumstances. Income tax relief can only be claimed against income tax due to be paid in the same tax year as the share subscription. Prospective investors are strongly advised to seek independent advice as to their tax position and as to the suitability of any VCT investment before proceeding. For detailed information provided by HMRC on VCT tax reliefs please click here.


After your purchase your shares, you will be issued with a tax certificate which is typically issued at the same time as your share certficate. If you pay tax under PAYE you can either contact HMRC and have your tax code adjusted immediately or you can claim your income tax relief through your Self-Assessment form at the end of the tax year.


Yes, income tax relief can be claimed on shares issued as a result of re-invested dividends.

Offer (if open)


Please make cheques payable to Share Registrars Limited a/c Amati


Please send your completed application to: Share Registrars Limited, The Courtyard, 17 West Street, Farnham, Surrey, GU9 7DR


We can facilitate initial advisory fees on an advisory basis only. Fees for initial advise can be facilitated through the application process. Ongoing fees are only applicable on execution only off platform basis, and will be paid by the Manager. Ongoing fees of 0.375% are paid on an annual basis and are limited to 5 years.

Regulatory


VCT funds receive special tax benefits because of their role in supporting the UK economy, but they must meet a number of conditions, many of which are similar to those for Investment Trusts. The main test unique to VCTs is that within three years of raising funds, and at all times thereafter, a VCT must ensure that 70% of its investments (by value recorded at cost, or last price paid per share) are 'qualifying holdings', that is shares or securities in companies which meet the conditions of the VCT scheme.

The rules governing qualifying holdings are complex and have been subject to many changes over the years. Funds raised through share issues during different periods are be subject to slightly different rules governing qualifying holdings. In this context it is worth noting that older VCTs, including the Amati AIM VCT, may benefit from being able to maintain pools of money which were raised under older sets of rules, and which allow them to continue to make new qualifying investments under those older rules, where it is advantageous to do so.

The main conditions that companies must meet in order to issue shares that form part of a VCT's qualifying holdings are as follows:

  • The investee company must be unquoted, which for the purposes of the legislation includes companies whose shares are traded on the Alternative Investment Market (AIM).
  • It must be carrying out a qualifying trade, which for the purposes of the legislation excludes the following: dealing in land; financial activities; leasing assets; farming or forestry; hotels; shipbuilding; producing coal and steel; generating electricity.
  • Its gross assets must not exceed £15m prior to the investment, and £16m afterwards.
  • It must be independent.
  • It must control all its subsidiary companies, and own more than 50% of each of them.
  • At least 10% of each qualifying holding must be in ordinary shares of the investee company, and at least 70% of qualifying holdings in aggregate must be in ordinary shares.
  • The investee company must also satisfy all of the conditions set out below as well.

For more detailed information provided by the HMRC on the conditions for VCT qualifying holdings please click here.


As from April 2014 VCTs may lose their tax-advantaged status if they invest in new shares in a company which has raised more than £5m from state aided sources over the twelve months prior to and including the date of investment. During the summer budget of July 2015 new conditions were announced, which became effective from Royal Assent in November 2015, with the stated intention of ensuring that state aided funding becomes more targeted as well as fully compliant with EU rules. These conditions in effect impose stricter limits on the nature and extent of investments which may be made by VCTs, and can be broadly summarised as follows:

  • In addition to the existing annual investment limit of £5m, no investment may be made by a VCT in a company that causes that company to receive more than £12m (£20m if the company is deemed to be a Knowledge Intensive Company) of state aid investment (including from VCTs) over the company's lifetime. A subsequent acquisition by the investee company of another company that has previously received State Aid Risk Finance can cause the lifetime limit to be exceeded.
  • No investment may be made by a VCT in a company whose first commercial sale was more than 7 years prior to the date of investment, except where previous State Aid Risk Finance was received by the company within 7 years (10 years in each case for a Knowledge Intensive Company) OR where both a turnover test is satisfied and the company is entering a new market or commercialising a new product.
  • No funds received from an investment into a company can be used to acquire another existing business or trade.

Two important exemptions have been introduced into the legislation to allow VCTs to manage their liquidity effectively through certain types of non-qualifying investments. Investments in UCITS funds and in shares purchased on a Regulated Market (for example the Main Market of the London Stock Exchange) are both exempt from the new restrictions placed on investments made by VCTs. This means that the Amati AIM VCT can broadly maintains its strategy of investing in the TB Amati UK Smaller Companies Fund (which is a UCITS fund), and of investing in certain individual stocks listed on the Main Market of the London Stock Exchange. Non-qualifying investments in AIM traded shares will, however, be subject to all of the new restrictions, as AIM is not, for the purposes of the legislation, a Regulated Market.

Please note that what we have provided above is not an exhaustive summary and should not be relied upon when considering an investment in Amati AIM VCT. For further details please refer to the policy paper published by HMRC, which can be found here.

In early 2016 HMRC is expected to provide more detailed guidance on the application of the new rules, at which time we will update this area of the website with any information of relevance to the Amati AIM VCT.