VCT returns lag private equity funds - research

clock

Investors opting for tax-advantaged vehicles such as venture capital trusts (VCTs) over private equity funds would have lost out in recent years, a study suggests.

A report by national accounting group UHY Hacker Young found UK private equity delivered an average annual return of 18.7% over the last decade. This compares with 2.1% for VCTs, based on figures from the British Venture Capital Association and Allenbridge Group respectively. It says there are no comparable figures for the Enterprise Investment Scheme (EIS), but points out a 2003 HMRC study found 22% of EIS investors in the sample had lost all or most of their money, 10% lost part, 20% made a modest profit and 18% a substantial profit. Rob Durrant-Walker, tax manager at UHY Hacker Young...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Investment

Wealth Club launches UK's first private markets SIPP

Wealth Club launches UK's first private markets SIPP

45% income tax relief

Patrick Brusnahan
clock 24 March 2026 • 1 min read
Rebalancing act: Sometimes doing very little in portfolio management is the hardest thing to do

Rebalancing act: Sometimes doing very little in portfolio management is the hardest thing to do

'More often, it's the quieter disciplines that matter most'

Phillip Young
clock 23 March 2026 • 3 min read
Crypto investors receive 40 times more HMRC tax warnings than stock traders

Crypto investors receive 40 times more HMRC tax warnings than stock traders

Data shows enforcement activity shift

clock 19 March 2026 • 2 min read