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Ingenious Entertainment VCTs 1&2 H Share

Minimum investment: £3,000
Suitable for: Personal, Venture Capital Trust
Target returns: 14.3% per annum tax free

The Ingenious Entertainment VCTs 1&2 H Share offers the opportunity for investors to gain access to a unique portfolio of companies that create, brand and promote live events and premium content. The fund has a structure that aims to create venture capital style returns with significant levels of downside protection through guaranteed minimum revenues. By generating profits from live events, and the onward sale of investments to third parties, the VCTs aim to achieve highly attractive returns for investors.

With the debt/equity markets in a period of high volatility, the fund, with its significant levels of downside protection enables increased portfolio diversification and high levels of stability. In the past few years there has been a shift away from spending on recorded music in favour of live music, with 2009 being the first year in which the value of live music overtook recorded music¹. The UK live events and entertainment market is undergoing a period of unprecedented growth. Industry estimates suggest that in 1988, less than 30,000 people attended a music festival; in 2011 around a quarter of a million people attended over the August Bank Holiday weekend alone². The unparalleled media expertise of the fund manager, Ingenious Ventures, allows for a strong and diverse deal flow giving access to the best deals and thereby taking full advantage of the growth in this sector.

|Ingenious Entertainment VCTs 1&2 H Share - Securities Note (1,013Kb)| |Ingenious Entertainment VCTs 1&2 H Share - Executive Summary (546Kb)| |Ingenious Entertainment VCTs 1&2 H Share - Application Forms (587Kb)| |Ingenious Entertainment VCTs 1&2 H Share - Tax Efficient Review (140Kb)| |Ingenious Entertainment VCTs 1&2 H Share - Supplementary Prospectus (78Kb)|

^{1 PRS For Music
2 YouGov Music Festivals Report 2012, SixthSense, Market Size & Trends}

VCT risk warnings

• VCTs must invest 70% in qualifying investments within three years and the investor must hold the investment for five years to retain the 30% income tax relief. Tax rules and regulations are subject to change.
• VCTs should be seen as longer term investments and may be higher risk and more difficult to realise than investing in other securities listed in the Official List of the UK Listing Authority and admitted to trading on the London Stock Exchange. The secondary market for shares in VCTs is limited and as a result shares in VCTs can trade at a discount to the net asset value.
• Past performance should not be seen as an indication of future performance. The value of shares in a VCT, and any income from them, may fall as well as rise and investors may not get back what they originally invested, even taking into account the tax reliefs.
• VCTs are designed to provide capital to small companies (typically newly formed companies, funded principally by the VCTs) and each VCT will generally invest in several companies. As such, there is a risk that these companies may not perform as hoped and in some circumstances may fail completely.
• The level of returns and the availability and timing of relief for the investor may be impacted by an investor’s tax position, changes (which may be retrospective) in legislation, the availability of investment opportunities and the qualifying status of investments made a VCT.

This information does not constitute or form part of any offer for sale or solicitation of any offer to buy or subscribe for any securities. Any decision in connection with an investment in these securities should be made only on the basis of information contained in the Prospectus issued in connection with the offer. In particular, your attention is drawn to the risk factors set out in the Prospectus issued in connection with the offer. When considering what action to take you are recommended to seek your own personal financial advice from an appropriately authorised independent financial adviser. You should also seek advice about your own personal financial position in relation to entitlement to tax reliefs associated with an investment in Ingenious Entertainment VCT 1 plc and Ingenious Entertainment VCT 2 plc.

Ingenious Entertainment VCT 1 plc and Ingenious Entertainment VCT 2 plc are managed by Ingenious Ventures, a trading name of Ingenious Capital Management Limited, which is authorised and regulated in the UK by the Financial Conduct Authority.