VCTs see record fundraise for 2018/19 tax year

The figure marks the highest amount ever raised at the current level of 30% up-front tax relief and the second highest amount since the inception of this type of product in 1995.

For the 2017/18 tax year, the sector raised £728m, and £542m in the tax previous year. The only year to beat this year's record was 2005/2006, which saw £779m raised in VCTs.

Ian Sayers, chief executive of the AIC, said: "The 2018/19 fundraising figure reflects consistent high demand for the VCT sector and the growing recognition of the benefits VCTs provide to investors.

"It is the second highest fundraising figure since VCTs were introduced, boosted by the pension changes and VCTs' strong long-term record of delivering growth and income returns."

John Davies: Key themes affecting the VCT sector

Sayers said VCT fundraising is crucial for the UK's younger companies, as they benefit from investment and expertise needed to grow.

He added: "VCT-backed businesses deliver vital economic, social and environmental benefits, with jobs more than doubling after VCT investment.

"VCTs invest in important areas like healthcare, technology, education and the environment. VCT investment continues to be a catalyst for change at some of the UK's fastest growing businesses."

Historic VCT fundraising figures ex enhanced share buybacks

Tax year	Fundraising (£millions)
2018/19	731
2017/18	728
2016/17	542
2015/16	457
2014/15	429
2013/14	420
2012/13	269
2011/12	267
2010/11	354
2009/10	338
2008/09	154
2007/08	220
2006/07	267
2005/06	779
2004/05	505
2003/04	50
2002/03	65
2001/02	125
2000/01	433
1999/2000	270
1998/99	165
1997/98	190
1996/97	170
1995/96	160

Source: AIC

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• Topics
• Tax-efficient Investing
• AIC
• Association of Investment Companies
• Venture Capital Trusts
• vcts
• fundraising

About the author

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• Jayna Rana
• @Jayna_Rana

Jayna is senior reporter and investment trust correspondent at Investment Week. She joined the publication in August 2015 after graduating with an MA in Multimedia Journalism from the University of Kent.

Jayna holds the NCTJ diploma and has experience in print, online and broadcast journalism. She is responsible for the Investment Week monthly podcast.

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