Five reasons VCTs could make sense for your clients and your business

'VCTs are now emerging as a tax-efficient option for a potentially wider audience'

clock • 5 min read

Kirsty Barr explains why there's never been a better time for advisers to harness the potential of considering VCTs for clients...

Venture capital trusts (VCTs) might not be something you recommend every day, but they warrant attention. As the scheme turns 30, VCTs are gaining renewed interest – both from advisers and clients seeking strong post-tax outcomes and diversification. Long viewed as a niche, end-of-year tax planning tool for high net worth clients, VCTs are now emerging as a tax-efficient option for a potentially wider audience - particularly as limits on pensions and ISAs continue to tighten. They're so in demand in fact, that almost £900m was invested into VCTs in the 2024/25 tax year, the third highest...

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

The AI exposure problem: Why VCTs are the overlooked route in

The AI exposure problem: Why VCTs are the overlooked route in

The question advisers should be asking

Stuart Mant
clock 01 October 2026 • 6 min read
Why now is perhaps the time for advisers to revisit EIS

Why now is perhaps the time for advisers to revisit EIS

'For advisers, this creates an opportunity to engage clients in a different conversation'

Andrew Aldridge
clock 01 October 2026 • 6 min read
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