Ventus VCT plc and Ventus 2 VCT plc - The Tax Shelter Report

SUMMARY
1. OFFERS
1.1 Reasons for the Offers
Ventus and Ventus 2 are existing venture capital trusts that invest in a portfolio of companies that develop, construct and operate
UK renewable energy projects with a typical capacity of between two and twelve megawatts. The Companies have, together with
Ventus 3, invested substantially all of the £37 million of ordinary share capital from their initial fundraisings.
In 2009, Ventus and Ventus 2 each raised a further £6.5m under a ‘C’ Share offer. The Manager has negotiated exclusivity
agreements to invest approximately £3m of ‘C’ Share capital and has generated a pipeline of suitable opportunities in which it
expects to invest the balance. The Boards believe that UK renewable energy projects using established technologies with a
proven track record remain attractive in the current economic environment and the Companies’ investment pipelines remain
strong. As such the Directors have decided that it is appropriate to raise a further £10m of ‘C’ Share capital to continue the
Companies’ successful investment programmes.
1.2 Significant Tax Benefits for Investors
Investors in the Offers will be entitled to the following tax benefits:
• up-front 30% income tax relief, such that an investment of £10,000 will effectively cost the investor £7,000 (subject to certain
qualifying conditions);
• tax free dividends; and
• gains on disposal of Offer Shares free of capital gains tax.
2. INFORMATION RELATING TO THE COMPANIES
2.1 The Investment Manager
The Companies have the same investment manager, namely CCC, which is an alternative investment manager and adviser
specialising in opportunities generated by the global transition to the low carbon economy. Founded in 2003, CCC manages
collective investment schemes with commitments totalling approximately £1billion. CCC is regulated in the conduct of investment
management by the FSA.
2.2 Investment Objectives
The Companies are existing venture capital trusts that invest in a portfolio of companies that develop, construct and operate UK
renewable energy projects with a typical capacity of between two and twelve megawatts. To date they have invested in more than
25 such companies. The Directors believe that continued legislative support for UK renewable energy projects, and increasing
targets for renewable energy generation in the UK, create an attractive investment opportunity. The Directors believe that projects
that use technologies with a proven operating track record – such as wind, hydro-electric, biomass and landfill gas – provide an
attractive renewable energy investment opportunity. The Manager has an extensive investment pipeline with over one hundred
megawatts of renewable energy generation capacity under review.
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