VCT flows increase 37% post-Budget as investors lock in tax relief

This is 37% higher than average over the same period in the last five years, as investors flocked to VCTs before upfront income tax relief is reduced from 30% to 20% from April 2026. Overall, £568m has been invested into VCTs so far this tax year, representing a 4.3% rise year-on-year and 16% more than in 2023/24. Wealth Club chief investment strategist Susannah Streeter said that with taxes at a 70-year high, it is understandable why VCTs are so attractive to investors right now. "The big cuts in capital gains tax and dividends' tax-free allowances in recent years are eating into ...