Concentration risk: Why it's time for VCT diversification

In the 2021/22 tax year £1.13bn was invested in VCTs

clock • 5 min read

Oliver Warren explores the boom in VCT investment and says there is a growing need for diversification...

In the 2021/22 tax year, £1.13bn was invested in venture capital trusts (VCT), a record amount and a more than impressive show of confidence in the UK's early-stage ecosystem during a period of considerable upheaval. With investors looking to alternative asset classes like venture capital for returns, pension contributions tightening, a struggle to find portfolio income elsewhere, and a reliable source of tax relief in an otherwise uncertain tax landscape, it is possible there will be similar demand this year. There is, however, a growing need for diversification. With the average ind...

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 bring green shoots as tax burdens bite

VCTs bring green shoots as tax burdens bite

The VCT fundraising season is in full swing

Simon Moon
clock 21 April 2026 • 4 min read
The adviser evolution: Why tax‑efficient investing is becoming essential, not optional

The adviser evolution: Why tax‑efficient investing is becoming essential, not optional

Outcome‑driven advice will define future sector leaders

Andrew Aldridge
clock 17 April 2026 • 6 min read
VCTs raised £918m ahead of upfront income tax relief cut

VCTs raised £918m ahead of upfront income tax relief cut

Third highest annual fundraise on record

Michael Nelson
clock 08 April 2026 • 2 min read