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...

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