Venture capital trusts (VCTs) saw a 538% spike in inflows on Thursday (27 November), as investors rushed to lock in current income tax relief levels, according to Wealth Club.
As part of Wednesday's (26 November) Budget, the government unveiled plans to cut the upfront income tax relief for VCTs from 30% to 20% from April 2026 to the consternation of industry experts who slammed the move as an "appalling blow" to the sector. At the time, Wealth Club CEO Alex Davies said the change could lead to a "bumper" 2025-2026 financial year for VCTs in "a case of ‘buy now while stocks last'" scenario. Confirming his theory, total VCT applications hit £2m the day after the Budget, up from a daily average of £319,700 last year. "We suspect this is just the start of t...
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