Investing for income

Generate income by investing in entrepreneurial companies, company loans and dividend paying companies.

Your capital is at risk and returns are not guaranteed.

Venture Capital Trusts (VCTs)

Invest in small-medium sized or early-stage UK companies to help them grow:

  • Receive income via tax-free dividends
  • Access 30% income tax relief and pay no capital gains tax
  • High risk and long term compared to more conventional investments

Fixed-rate bonds

Invest directly in small-medium sized UK businesses in a variety of sectors:

  • Receive fixed interest returns - generally in the range of 2.25-6% p.a.
  • Tax free income if you invest via an Innovative Finance ISA
  • Your bonds are secured against the assets of the companies you invest in

Downing Monthly Income Fund

Invest in a concentrated portfolio of around 30-40 companies listed on a UK stock exchange:

  • Fund targets a yield of 4% p.a. over the long term
  • Receive income via monthly distributions 
  • Largely uncorrelated to the wider UK equity market