MPs join VCT stakeholders in calling for tax relief restoration as fiscal headwinds grow

Open letter to Chancellor Healey

clock • 3 min read

A cross-party group of MPs has signed an open letter with industry stakeholders, calling for Chancellor John Healey to reinstate the 30% rate of upfront income tax relief for venture capital trusts (VCTs) at the upcoming Budget.

The group of MPs – including ten Conservatives and one each from Labour and the Liberal Democrats – said the chancellor should "strengthen, not weaken" VCTs, which they noted have mobilised private savings into innovative UK companies and supported entrepreneurs through the scale-up stage since their inception in 1994. In an open letter on Monday (21 September), also signed by industry leaders from trade associations and VCT boards, signatories said former chancellor Rachel Reeves' decision to increase the amount VCTs can invest into individual businesses at the last Budget was offset by...

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