VCTs remain attractive despite Treasury 'tax tinkering'

Chelsea Financial Services study

clock • 2 min read

Venture capital trusts (VCTs) have delivered strong dividends and income return for investors over the past decade, despite a cut to upfront tax relief, according to research from Chelsea Financial Services (CFS).

In a ten-year analysis of 29 VCTs published yesterday (24 September), CFS found that some trusts have returned more than 90% of their starting net asset value (NAV) through dividends. VCTs have continued to offer investors tax-free dividends and capital gains opportunities despite the government cutting the upfront income tax relief rate from 30% to 20% at the last Budget and a decade marked by political instability, Brexit, Covid, geopolitical conflict and a "torrid" AIM landscape, the research found. Chelsea Financial Services blasted the cut to tax relief and called for it to be re...

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 VCTs / EIS

VCTs remain attractive despite Treasury 'tax tinkering'

VCTs remain attractive despite Treasury 'tax tinkering'

Chelsea Financial Services study

clock 25 September 2026 • 2 min read
The uncapped EIS relief that may come into focus post-Budget

The uncapped EIS relief that may come into focus post-Budget

Few expect this Budget to leave CGT rates untouched

Graham Schwikkard
clock 23 September 2026 • 4 min read
Albion eyes retail clients for VCT market

Albion eyes retail clients for VCT market

Follows VCT changes announced in 2025 Autumn Budget

Sophia Panayi
clock 23 September 2026 • 2 min read