If you wish to sell your VCT shares, you can do so by using a stockbroker. Shares in Downing’s VCTs are traded on the main market of the London Stock Exchange, so any broker should be able to help you.
Usually, you will need your share certificate to sell your shares. Some brokers may insist that before you instruct them to sell the shares, you lodge your share certificate with them so they can transfer the shares into their nominee account.
Most of Downing’s VCTs have an active share buyback policy to help ensure that there will usually be a liquid market in the shares. When shares become available in the market, the market maker will sell the shares to the VCT at a set discount to the latest net asset value (in line with the buyback policy).
It will usually be easiest if your broker deals directly with the VCT’s Corporate Broker, which in all cases is Panmure Gordon (UK) Limited (“Panmure”). Contact details for Panmure can be found below.
Occasionally, you might find there is a short delay in selling your shares while the market maker builds up a batch of shares for the VCT to buy. There may also be a closed period when the VCT is prohibited from buying shares until its company results are released.
The price at which you can sell your shares depends on the VCT’s share buyback policy and will be subject to a small margin for the market maker.
Please note, the share buyback policy of each VCT is subject to regulatory and liquidity considerations and could be temporarily suspended or changed from time to time.
There may also be tax implications. If you haven’t held your shares for the minimum holding period of five years before selling, you may have to pay back HMRC any income tax relief you claimed.
Contact details for Panmure Gordon (UK) Limited:
020 7886 2716
020 7886 2717