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

  • 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.



Already a Professional Adviser member?


More on VCTs / EIS

New Knowledge Intensive Enterprise Investment Scheme fund will focus on healthcare and technology companies.

Calculus capitalises on lifted EIS sunset clause with new fund

Knowledge Intensive EIS fund focuses on healthcare and technology

Eve Maddock-Jones
clock 13 October 2022 • 1 min read
VCT provider Calculus launches £10m VCT top-up offer

VCT provider Calculus launches £10m VCT top-up offer

Solution gives VCT investors access to diversified portfolio of UK companies

Jenna Brown
clock 28 September 2022 • 1 min read
Simon Porter: "We frequently have our minds changed about a business after meeting a founder, and a key factor that cannot be conveyed on a PowerPoint slide is the character and passion of the founder (and their team)."

Simon Porter: Why founders are the key ingredient to VCT investment

Passion and committment

Simon Porter
clock 01 November 2021 • 4 min read